Presented by Robert M. Cunningham at the Brunswick-Golden Isles Chamber of Commerce on January 21, 2015, in Brunswick, Georgia.
Businesses routinely extend credit to their customers for various transactions, making themselves lenders and, more often than not, unsecured creditors. The best customers pay their invoices in a timely manner. But what happens when repayment does not follow? When the customer resorts to filing for bankruptcy protection, do the unsecured creditors get paid? Can the business be forced to continue to work with customers in bankruptcy? Can a business protect itself without going to the attorney’s office for each sale made?
This program discussed the rights and options of businesses, as creditors, in Bankruptcy Court. In addition, some common methods of minimizing losses were reviewed – account guaranties, security agreements, deposits, etc. Attendees learned how to maximize the ability to collect outstanding debt through settlements and workouts. Other topics included documenting the transaction and credit terms, how to make a demand for payment, and when it is necessary to go to the attorney’s office.