In the news recently, the maker of Twinkies, Hostess Brands, sought permission from a bankruptcy court to liquidate its assets and dissolve its business. Although this episode resulted in some nostalgic outpouring, one question for some everyday Americans is “What happens if a company that owes me money goes into bankruptcy?” Hopefully your debtors won’t be in as sorry shape as Hostess Brands was in recent years, but if you have anxieties about a debtor company’s debts to you, here are six things to do:
(1) If you foresee the bankruptcy, you can expect to receive a notice in the mail.
(2) Then, find out why the company owes you money. If you are an employee, you might be owed wages, or more significantly, you might see pension plans modified in Chapter 11.
(3) You will receive a form called a “proof of claim,” which will allow you to list the amount you are owed if it isn’t available on the bankruptcy schedules that were also included in the mailing. If you know the amount, list it, and you will see how much you will get paid in the Chapter 11 repayment plan. If you don’t know, such as an incomplete tort claim, you will have to discuss your case with your tort lawyer or a bankruptcy attorney.
(4) If you are finding difficulties filling out the claim form, talk to a lawyer. A badly completely form can make the situation worse.
(5) Do not miss the filing deadline.
(6) Include a self-addressed, stamped envelope so the court can return the date-stamped claim to you. This will serve as evidence that you did your part correctly and are owed money if problems arise.
Unless you are a large bank, most people aren’t owed a lot of money by debtor companies in bankruptcy. However, mistakes and missed deadlines can cause all kinds of problems, which makes discussing the situation with an experienced Las Vegas bankruptcy lawyer advisable.
For more questions about bankruptcy in Las Vegas, please feel free to contact an experienced Haines & Krieger Las Vegas bankruptcy attorney for a free initial consultation. Call us at 1-702-880-5554 to set up your free consultation.