bankruptcy 101 for trade creditors
DESCRIPTION
Before, During, and After Bankruptcy: a basic course for sellers of goods and/or services to businesses.TRANSCRIPT
Basic Terminology 1
•Debtor•Chapter 7 •Chapter 11 •Chapter 9 •Chapter 15
Basic Terminology 2
•Trustee •US Trustee •Bankruptcy Judge•Filing Date/Petition Date •Pre-petition vs Post-petition
Secured Creditors
•Security Interests (sales of goods)•Mechanics’ Liens (goods and/or services)•Bond Claims •Artisans’ liens
Unsecured Creditors
•Trade Creditors•Letters of Credit
Commercial Standby
•Sales Without Passing Title Sale or Return Consignments
•Joint Check Agreements
Lawyers
and/or
Collection Agencies
How to Respond to a Bankruptcy Filing
•Reclamation Letter •20-day Rule = 503(b)(9)•Setoff •Executory contracts •Critical Vendors •File a proof of claim •Sell the Claim•Unsecured Creditors Committee
Preference Payments Basic Defenses
•Cash-in-Advance
•Secured Creditor
•Subsequent “New Value”
Which are the creditors?
Which are the debtors?
