Kevin

>Sorry in advance if I'm not posting this in the right spot, though I believe I've seen general business questions in the 'Chatter' section before.
>
>One of our clients (obviously, I can't give a name) has just recently filed for Chapter 11 'reorganization.' They owe us a good amount of money, and they probably have debts to other companies as well.
>
>Once a creditor learns that a debtor is filing Chapter 11, should a creditor have their attorneys contact the debtor's attorneys ASAP, or should the creditor wait and be contacted?
>
>I did some reading on what's involved in an 11...sounds like a very tangled web.
>
>Thanks in advance,
>Kevin

First of all the best person to answer this question is you lawyer. <g>

Secondly, if you think you'll get something rather than nothing I'd think you're better off to get in line. Remember that the IRS always goes to the front of the line, followed by other 'official' entities. Then I think it's a matter of first come, first serve but I'm not a lawyer so don't quote me.

Thirdly, I'd remind you that often times companies survive Chapter 11 and you may be able to negotiate a repayment that will ensure that you get some $$ and also lessens the burden on your customer. IOW, stretch things out a bit time-wise. No sense in sending them over the brink by being too hardnosed. It is in your interests that your customer survive and 50% of something is always better than 100% of nothing. <g>