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ARTICLE · 13 JUNE 2024

A Primer For Creditors Navigating The Bankruptcy System

Ward and Smith, P.A
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The Bankruptcy Code is complex and difficult to navigate. But used properly, it can helpcreditors to minimize losses when a customer files bankruptcy.

United StatesInsolvency/Bankruptcy/Re-Structuring
Jameson A. Doub
Jameson A. Doub
Thomas C. Wolff
Thomas C. Wolff

Bankruptcy filings affect businesses across America.

The Bankruptcy Code is complex and difficult to navigate. But used properly, it can helpcreditors to minimize losses when a customer files bankruptcy. This article will guide you on how to stay out of trouble and improve your chances of getting paid by a bankrupt customer.

What Does the Bankruptcy Filing Mean?

The Bankruptcy system serves three basic purposes: It (i) provides a single forum to deal with the assets and liabilities of an insolvent debtor, (ii) provides the honest, but unfortunate, debtor with a "fresh start," and (iii) if a debtor chooses to reorganize its debts, it provides a process for saving and preserving the going-concern value of a business.

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