July 2010

Your Biggest Customer Just Went Bankrupt - Now What?

From OpenForum.com.

According to the American Bankruptcy Institute (ABI), 69 percent of the 61,148 business bankruptcies declared during the 12-month period ending in March 2010 were Chapter 7 liquidations.

In most chapter 7 liquidations, unsecured creditors are not made whole. Many don’t receive any part of what they are owed.  If one of your customers enters Chapter 7 bankruptcy, there is a good chance your company won’t recover any part of what it is owed.

So what should you do if your biggest customer declares bankruptcy?

Find out.

Read Partner Pat McNally's article on this same topic, What should you do when a customer files bankruptcy?

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This publication is part of Blackman Kallick’s marketing of professional services, and is not written tax advice directed at the specific facts and circumstances of any person and/or entity. Contents of this publication are of a general nature, and you should not act on this information without obtaining professional advice from your business advisor that is appropriately tailored to your individual needs and circumstances. This written advice is not intended or written to be used, and cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code.