02.10.09
Just Get It Up Front
Your customer has file Chapter 11 bankruptcy but wants to keep buying? Keep supplying him, but make sure he pays: cash-in-advance, cash-on-delivery, the posting of letters of credit or security deposits, third party guarantees, wire transfers. I’ve never heard of a court holding that such practices violate the automatic stay. I’ve also had many clients make a lot of money after a customer files Chapter 11. My clients’ competitors are embittered, so they cease doing business with the bankrupt. My clients keep their heads . . . and get a bunch of business shoved their way.
