A company that owes my company $30k filed chapter 11. anyone know what court docs and procedures I'll need to look out for to collect my money?
How do I file my invoices/make sure those that I've already filed are filed correctly?
You will receive books & books of paper from their bankruptcy attorneys and the bankruptcy court.
Some time in the next 6 months or so, you will get a statement that shows your outstanding invoices, as will all unsecured creditors.
Then, in one or two years, you will get either a settlement, or more likely, a 1099 showing the taxable income that you have to pay to the IRS on money you never received. Sweet deal isn't it?
Unless you have a secured debt (like you sold them a truck) OR your products/services are necessary for the bankrupt company to continue business, you aren't getting this money.
In the past 5 years, my small company has eaten around $100,000 in bad invoices from bankrupted companies. Those that continue doing business pay us in increased future prices, the majority don't pay.
Here is the approximate ranking of payouts.
1. IRS/State/Local government for back taxes
2. Employees
3. Major creditor, usually a huge bank that the government currently is protecting/owns.
4. Everybody else
Good luck and sorry.
-small manufacturing company
