COLLECTIONS TO BANKRUPTCY BEST CHANCE FOR RECOVERY

Requiring collateral and a security agreement will convert your debt from unsecured to secured and will give you a huge leg up in the event that a bankruptcy is filed. Require those customers to provide you additional security, be it a lien on real property, a lien on equipment, or even a personal g...

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Bibliographic Details
Published inCommercial Law World Vol. 34; no. 1; pp. 6 - 9
Main Authors Burkley, Kirk B, Wendolowski, Raymond P
Format Trade Publication Article
LanguageEnglish
Published Chicago Commercial Law League of America 01.01.2020
Subjects
Bankruptcy
Collateral
Credit policy
Debt
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Summary:Requiring collateral and a security agreement will convert your debt from unsecured to secured and will give you a huge leg up in the event that a bankruptcy is filed. Require those customers to provide you additional security, be it a lien on real property, a lien on equipment, or even a personal guaranty, before you sell to them further. If you are fast enough, you may even be able to convert your debt from unsecured to secured by way of the judgment lien you obtain if the customer owns real property. Take the time to review the bankruptcy petition and the schedules the debtor has filed.
ISSN:0888-8000