Chapter 11

[beenthere]

Hello, new to the forums and have a Bankruptcy question.

I own my own business and just found out yesterday that a customer I have dealt with for years is planning on filing chapter 11. He is the biggest account I have and owes me a large sum of money.

Does anyone here have any experience with Chapter 11? Since 11 is reorganization is there still a chance I would get full payment of my service they owe me for?

Also would I end up having to hire a lawyer to handle this?

Thanks!

[HHM]

Chapter 11's are fairly complex and time consuming. It is unlikely you will get full payment, but there are many factors at play.

[FreshLikeADaisy]

Beenthere, I don't think I'd get within walking distance of a Ch11 without an atty. If I'm not mistaken, the bankruptcy notices that are mailed to creditors listed in a Ch11 tell the claimant how to file a claim, so you could start there, but if there's any complexity to your claim at all then definitely get an atty if the amount of the claim warrants it.

That said, just be sure you keep track of the situation, know when he files, and try to make sure you are a creditor listed in his bk so you can file a claim. If he's someone you know personally, just ask him to keep you updated. To me, it's not even an issue until he files because there's nothing you can do about it until he does.

Keep in mind I know absolutely NOTHING about Ch11's, these are just bk basics that came to mind. Good luck!!!

[beenthere]

Thanks for the replies...... Hopefully it will not come to that and I can get paid for some of the work I have done.

[HHM]

Yeah, if the claim is worth while, you may want to get an attorney. In chapter 11's, more so than other types of BK's, the "type" of debt becomes much more important because of the priority scheme in which debt's get paid. Since the debt owed you is for services rendered, and not money loaned, that fact might give you an advantage.

But in any event, just keep an eye on the filings and the associated instructions.