What to Do When Your Suppliers and Customers Go Under
by Barbara Weltman on August 26th, 2009
What happens to you if you’re owed money? What if they file for bankruptcy? What legal protections do you have and what action must you take? Find out what steps to take and how to avoid problems. Some companies are closing their doors, some consumers are filing for bankruptcy protection, and many small businesses that sell on credit are concerned about receiving payment—for good reason. Understanding bankruptcy If a company or person files for bankruptcy protection, most unsecured creditors stand at the back of the line; they’re lucky to receive pennies on the dollar. Some creditors may gain special status... Read more »