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Bankruptcy Claim

CaliforniaBankruptcyCollections

We have a customer that owes us $6695 with finance charges ($3,808 without finance charges). They have filed for bankruptcy. We received a notice with a phone meeting of creditors (10/25) and file deadline to object to discharge (12/27). Do we need to be on the call? Do we need to do anything before the call? And if they discharge is it worth challenging? Thank you for your help.

2 replies

Oct 21, 2021

It really depends on facts particular to your situation. You might want to speak to an expereinced bankruptcy/construction attorney to run through a checklist of considerations (e.g., do you have lien rights, might have you receied preferential payments, are you an unsecured creditor, etc.). In a vacuum given the amount of your claim, it might make sense to just file a Proof of Claim (perhaps a 503(b)(9) claim if there are any monies due for materials furnished in the 20 day period prior to the bankruptcy filing), and sit back and wait to see if there is a distribution to unsecured creditors. Again, probably makes sense for you to speak to qualified legal counsel before you decide on your proper course forward.

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Oct 29, 2021
Thank you for your help. We appreciate it.
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