What legal action can I take to collect on outstanding invoices?

I have a customer that filled for bankruptcy a few months back, now they are late on their currect invoices. What action can I take to collect on the past due invoices?

Asked on May 23, 2012 under Business Law, Texas

Answers:

B.H.F., Member, Texas State Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You need to get in touch with the trustee that is handling the bankruptcy and see where the bankruptcy is at.  If there is still time, you need to file a claim with the bankruptcy court so that if funds do become available that you have a chance of getting part of them.  If the customer is doing a reorganization of their debt, then this means you have a better chance of getting something.  If you do not assert your claim in the bankruptcy proceeding, then the court could categorically discharge all of the customer's debt, even those not listed-- which means that you don't get anything and you will barred from collecting a discharged debt.  You're only option at that point is to right it off as a bad debt expense. 


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