Trade Tip #3

If your customer filed bankruptcy, first find out whether the bankruptcy is a chapter 11 or chapter 7. Generally, debtor continues to operate under chapter 11 and ceases operations under chapter 7.

Second, obtain copies of all documents filed in the case to understand the facts and circumstances and identify any upcoming deadlines. These documents can be retrieved from Public Access to Court Electronic Records (PACER) system.

Third, file a notice of appearance under Federal Rule of Bankruptcy Procedure 2002 to receive future pleadings and other documents filed in the case.

Finally, makes sure you attend the §341 meeting to examine the debtor under oath about its assets, liabilities, plans regarding reorganization.

You can learn more by reading What to Do In the Event of a Customer Bankruptcy by Michael A. Brandess.



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About Hajar Jouglaf

Hajar is an associate with Sugar Felsenthal Grais & Helsinger LLP in both its Business Transactions Group and its Restructuring & Insolvency Group.

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Hajar Jouglaf
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