Tag Archives: bankruptcy

Preference Actions in Bankruptcies

Your client owes you, files for bankruptcy… and you have to pay back money?

Brant Feltner

For design professionals who run their own business, it is never a good feeling

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to find out a client has filed for bankruptcy. In many cases, there are warning signs—slow payments, missed payments, or nonpayment—so when you receive the ultimate news, it may not come as a surprise. However, what may come as a surprise is when a customer files bankruptcy, your design or specifications firm may not only lose out on any unpaid debt, but also be forced to return money already received. Continue reading