Posted by ToniK on 10/21/07 9:28pm
Msg #217591

Certified Signings Cassondra she filed a Chapter 11

Just got the message 57 mins ago. Here is what she said when I emailed her about my invoice not being paid:

"We've filed a Chapter 11 and your invoice has been included.

Sorry for the inconvenience.
Cassondra"

Doesnt this mean they are reorganizing?

Reply by MikeC/NY on 10/21/07 9:51pm
Msg #217593

<< Doesnt this mean they are reorganizing? >>

Yes, but it also means you may not get paid, or may only get paid pennies on the dollar. The chances of getting everything you're owed are pretty slim - it depends on the reorganization plan they file and whether it's accepted by the bankruptcy court. At least they're trying to come out of it rather than just toss in the towel.

If your invoice is included in the filing, you should get a notice from the court.

Reply by Kevin/Ct on 10/22/07 2:51am
Msg #217602

A Chapter 11 bankruptcy is a reorganization, but it can be converted to a Chapter 7 liquidation if the reorganization does not works. You should be receiving a notice from the court directing you to file your proof of claim with supporting documents attached. In a reorganization unsecured creditors usually receive little or nothing on the debts owed to them.

The bright side of a reorganization is that if you continue to do business with a bankrupt after it has filed for a Chapter 11, your bills for the subsequent service become administrative expences, and are accorded one of the highest priorities. The bankrupt is required to stay current on these administrative expenses during the period of the bankruptcy.

The bankrupt can file a motion to void existing contracts, but between the period from the date of filing to the time the motion is granted it must pay its bills in a timely manner. Since most of the signing agents work on short term contracts the motion to void existing contracts is not likely to affect them

Reply by Barb/MO on 10/22/07 8:27am
Msg #217608

Reply w/ request for case no. and specific court where filed

for purpose of verification of the filing. She should have that information at hand. Ask if she doesn't have that if she'll provide the name, address and phone of her attorney so you can get that info from him/her. Ask her also the name of the entity/person(s) who filed--who is/are the debtor(s).

Honestly, I'd be surprised if this entity were large enough to have really filed a Chapter 11. In terms of adminstrative expenses (especially U. S. Trustee's, attorneys' and other professionals' fees), they're not cheap. Is Certified Signings a subsidiary of a title company or the like? Or was this a proprietorship with the individuals running it who have filed? (In that case, they could have filed a Chapter 13 which would be much less expensive in terms of costs if the total debts were under certain limits.)

Reply by Philip Johnson on 10/22/07 9:28am
Msg #217626

Do you know how her company was set up?

Sole Proprietor, LLC or Inc.?

Reply by ToniK on 10/22/07 10:49am
Msg #217637

Phillip...It's an INC company. n/m

Reply by Kevin/Ct on 10/22/07 11:01am
Msg #217644

Re: Do you know how her company was set up?

The Bankruptcy Court has held that the remedy of a Chapter 11 reorganization is available to individuals as well as corporations. However, most individuals choose a Chapter 13 reorganization if going bankrupt. Under Chapter 13 the bankrupt usually winds up with 5 years to pay his debts in stead of liquidating them completely. The law has changed twice in the past few years making it more difficult for an individual to file a Chapter 7 liquidation which expunges his debts completely...the credit card companies were tired of being beaten out of payment and lobbied for the change.

Reply by Ndwa on 10/22/07 12:59pm
Msg #217662

Re: Do you know how her company was set up? n/m