Karen E. Klein of Businessweek.com wrote a small article giving some advice on what to do when a client files Chapter 7 bankruptcy. Given the recent events with Ensemble Chimes Group (Chimes) declaring bankruptcy, we thought it might be useful to our readers.
Some key advice from the article is here:
“You should not do any more work for the larger corporation until you’ve got a payment for the outstanding amount and a new contract directly with the big firm, says Donald King, a bankruptcy attorney with Odin, Feldman, Pittleman in Fairfax, Va. You should also ask for administrative priority in the subsidiary’s bankruptcy case, meaning your claim will get higher priority for repayment.”
Click here to read the entire article: When a Client Files for Bankruptcy.