Posted by MikeC/NY on 9/23/07 7:29pm
Msg #212708

Bankruptcy info

After reading the various posts on several signing companies closing their doors, I saw this today in the local newspaper. The initial question is not about the the same situation we would be in, but the article addresses independent contractors in general and lays out in simple terms what you need to do to try to collect some of what is owed to you. There's a phone number included, but that's for the Bankruptcy Court here on Long Island - I imagine the rules are the same everywhere else since it's a Federal court, but you'll have to find the court that covers your district.

Pay particular attention to the part at the end where she talks about maybe having to give back any payments you received if they were made just before the firm declared bankruptcy - that's a nasty surprise....

http://tinyurl.com/3ccg7c

Reply by Nick/MD on 9/23/07 7:50pm
Msg #212718

good point. I received a check from EFS the day they closed 09/14; it ended up not being good because they filed bankruptcy on 09/17... my attorneys had already alerted me to that very fact, that the trustee could come back to me later.

Reply by Linda_H/FL on 9/23/07 7:54pm
Msg #212719

Looks like I better set aside a little reserve - just in case thanks for the info, Mike.

Reply by C_in_OKC on 9/23/07 11:14pm
Msg #212735

Many moons ago I worked in the department of a telecom company that was responsible for submitting proof of claims for services provided to bankrupt customers. It was a major pain that a year or later the courts would send demands for payments made 90 days prior to the file date. It irked me that our company was losing out so that the money could be returned to a 'general fund' that seemed to always go to preferred stockholders (like bankers). The people that had purchased common stock (like retirement funds for teachers) pretty much never saw a dime.

Reply by Barb/MO on 9/24/07 6:31am
Msg #212738

My experience was different as to those demands for payment

See the last paragraph of my message at #212701. Rarely (I think actually, never) did we pay over anything in response to such a demand. We just sent a letter outlining the facts (esp. concerning ordinary course and new value), cc'd our attorney, and that was usually the last we heard. (I sure wish I'd kept a soft copy of that letter for myself. It might have come in handy sometime down the road.)

I think the trustees/their attorneys know of these defenses. They just send out the demands to everyone who received payment within 90 days to see what they can get. Easy money.