Your client owes you, files for bankruptcy… and you have to pay back money?
For design professionals who run their own business, it is never a good feeling 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