Information from U.S. Bankruptcy Court

Have you ever needed information on a bankrupt business account but didn’t know where to turn? Don’t feel bad, most business professionals don’t either. The answer, however, is as close as your phone and often a lot quicker than searching the Internet, pulling up and searching bankruptcy websites you know of, waiting for the site to load, etc.

Each of the 91 bankruptcy court districts has what they refer to as an automated Voice Case Information System phone number or VCIS. Most are toll free. Simply call that number, press 2 and enter the case number (or enter the complete and accurate business name of your commercial account ) and presto, a recording will provide you with the business debt,attorney’s name and phone number, petition filing dates, upcoming hearing dates and much more. Try it and see how easy it is.

Business Bankruptcy Protection

Many smaller commercial businesses may feel helpless when they find themselves low on the list of creditors when a large businesses files for bankruptcy protection. But smaller businesses do have recourse to protect themselves in the form of a reclamation demand. Such a reclamation provides a business the right to demand goods, which had been shipped to a customer, be returned if the customer files for Chapter 11 within a specific time period of receiving the goods. If the goods can’t be returned, the seller’s unsecured claim may be converted into an administrative expense priority claim. This move gives the claim a higher priority than ordinary unsecured creditors’ claims. Further, businesses don’t even have to wait for the bankruptcy filing in order to file a reclamation demand, which can be filed if evidence is presented that the customer is officially insolvent.