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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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Hello. My son recently started his own firm and has been finally

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Hello. My son recently started his own firm and has been finally in the black. However, a client just told him he is declaring bankruptcy and owes my son's company a lot of money for the last project, and my son owes vendors half the amount due for the supplies/products he purchased for the project. He is a young kid, 26, has been working 14 hour days to get his business going, and this puts him into the red. He is terribly scared and I had good success with you on another matter. Can you give us direction? Calls to the firm go unanswered. Thank you

Hello,


Thank you for your question. I am happy to assist you.


Once an entity has filed bankruptcy, a creditor must stop all attempts to collect a debt directly from the entity. All action must be taken in the bankruptcy court. To contact the debtor directly is considered to be a violation of the automatic stay of the bankruptcy court and could subject your son to penalties.


Your son's remedy is to file a proof of claim in the bankruptcy matter. Typically these forms are available at the bankruptcy courthouse. If there are assets available for distribution to the creditors, your son will share in them as per his allowed claim.


I hope that the information which I provided was helpful to you.


Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER


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THIS IS FOR INFORMATION ONLY. NO ATTORNEY-CLIENT RELATIONSHIP EXISTS. PLEASE CONSULT A LAWYER IN YOUR STATE FOR LEGAL ADVICE

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