This essay serves as an informative overview and does not constitute legal advice. It is crucial to consult with a qualified attorney for legal guidance.
Effectively managing the credit department's activities in the aftermath of a customer bankruptcy filing can be streamlined and optimized by utilizing a preprinted checklist. This approach not only saves valuable time and resources but, most importantly, helps prevent costly mistakes.
A comprehensive bankruptcy checklist should encompass a range of crucial activities, ensuring that no important steps are overlooked:
- Reclamation Notices: It's imperative to promptly send reclamation notices for any shipments made within ten days of the bankruptcy filing date. This ensures that your company's rights are preserved and potential losses mitigated.
- Reviewing Payments Received: Within the first 90 days following the bankruptcy filing date, a diligent review of payments received from the bankrupt debtor is essential. This evaluation helps determine the potential amount of reclamation claims, if applicable.
- Calculating Shipped Products: An accurate calculation of the quantity of products shipped to the customer within the 90 days leading up to the bankruptcy filing date is vital. This figure serves as a critical reference point for evaluating potential claims.
- Document Reproduction: Reprinting copies of all invoices, debits, credits, and at least two copies of the entire account statement as of the filing date is a fundamental first step. Comprehensive documentation is key to substantiating claims and maintaining a clear record.
- Proof of Delivery: Ordering proof of delivery for all open invoices ensures you have the necessary evidence to support your claims if and when that becomes necessary.
- Court Document Review: Diligently reviewing every document received from the Court is essential to ensure no actions are overlooked. Staying vigilant in this regard is crucial.
- Filing a Proof of Claim: Filing a Proof of Claim before the bar date is a non-negotiable step in the bankruptcy process. This action formally asserts your company's claim against the debtor company in bankruptcy.
- Supporting Documentation: Including all required supporting documentation along with the Proof of Claim is essential. Comprehensive supporting evidence strengthens your position and increases the likelihood of a successful claim in bankruptcy.
- Completion and Submission: Ensure that the Proof of Claim is completed, signed, and sent to the court via registered mail. Timely and accurate submission is critical.
- Confirmation of Claim Receipt: Following submission, confirming that the bankruptcy court has received and officially filed your company's Proof of Claim is essential. This confirmation provides peace of mind and ensures your claim is actively being processed.
- Documentation Archiving: Maintain meticulous records by keeping copies of all documentation sent to the Court. This practice serves as a valuable reference point throughout the bankruptcy proceedings.
Incorporating these tasks into a well-structured checklist not only facilitates efficiency but also helps safeguard your company's interests during the complex process of dealing with a customer bankruptcy.
