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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17252
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I am a small company that was working for a large corporation

Resolved Question:

I am a small company that was working for a large corporation that has filed for chapter 11 today , I am owed a large sum of money what should I do ? What are my options .
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 7 years ago.
you need to file a proof of claim to make sure the trustee knows you are owed money, in a chapter 11 the debts of the company are reorganized and not totally eliminated so you may be able to get some money.
Customer: replied 7 years ago.

What is an acceptable proof of claim ? When does it need to be filed ?


Expert:  WALLSTREETESQ replied 7 years ago.

the link above is what you file, you need to file it after they receive their case number XXXXX send it to the court, you should be receiving a letter from the bankruptcy court stating they listed you as a creditor.
Customer: replied 7 years ago.
Am I obligated to continue to work for them and if I do how will they be able to pay ?
Expert:  WALLSTREETESQ replied 7 years ago.
if they filed for bankruptcy, you do need need to finish your work, as they may not be able to pay you, have them pay you up front or proof they did not list your contract in their filing.
Customer: replied 7 years ago.
They have filed for bankruptcy because they do not have money to pay the creditors which tells me that they will not have money to pay for the additional work. I also have limited credit and money available to pay labor and materials for the work that still needs to be completed , if I can not finish what has been started what effect will that have ?
Expert:  WALLSTREETESQ replied 7 years ago.
only work for what was paid, if you do not continue to work, they cannot sue you as the bankruptcy filing makes the chances of them paying you small, especially for big corporations, who may have numerous other creditors to have to pay before you.
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