Legal Question in Bankruptcy in New Hampshire

Do creditors have any rights when a client files chpt 7 and still has outstandin

This is the situation.

My company has been notified that one of our clients has filed for chapter 7 protection. This client still has an outstanding debt with my company, as well as up to 4 other local businesses. I have tried to contact this client and ask if they are planning on paying their bills, and they refuse to talk to me. There is also something slightly shady about this company; it appears the owners also own at least one other company that is still collecting money. I just found out today that this client is still collecting money for outstanding debt owed to them, but having checks made out to the other company. I am not a lawyer and don't know the full extent of the laws involving bankruptcy, but it appears to me like my client is going to get away with all this, and I and fellow business owners are left with unpaid bills. Can you suggest anything? What can we do? It seems like the law doesn't really work for the guy that runs his business successfully and expects in good faith to be paid, by these businesses that result in bankruptcy. PLEASE HELP!!


Asked on 3/28/02, 1:29 pm

1 Answer from Attorneys
Roy Weddleton Granite Law

Re: Do creditors have any rights when a client files chpt 7 and still has outsta

If you have an official notice of bankruptcy you must cease trying to collect; if you are listed as a creditor you will get notice of a creditor's meeting with the bankruptcy trustee and you can raise your concerns then. If the debtor is determined to have no assets and you are unsecured, you will not get paid.

The best offense in these matters is a good defense, checking out people before extending credit; getting written contracts, personal guarantees, collecting all monies timely.

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Answered on 3/28/02, 2:28 pm


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