Legal Question in Bankruptcy in Michigan

Re: I'm a vendor to a corporation considering bankruptcy

It is not true that you would have the return money paid to you by the debtor corp if said money was paid in the usual course of business for supplies or product supplied at or about the same time. If you had an old account and you were paid on said account within 90 days of filing the result may be different and you might in fact have to give it back to the bankruptcy trustee and have that debt lumped in with other unsecured debtors (if it is in fact unsecured debt - which is what it sounds like).

The question you didn't ask is whether you deliver product on a certain date 30 days net and the debtor corp files for bankruptcy protection within that 30 days (and you have yet to be paid). Then, your recievable will likely become part of the class of unsecured debt. You may eventually get paid some, most, or all of that order, but it wouldn't be timely.

Don