When a debtor files for bankruptcy, it can have a ripple effect. One of those effects is that vendors, suppliers, and others that work with the debtor and are owed money from the debtor have become creditors. These claims can take more than a year to be paid out in the ordinary course of a bankruptcy case. Fortunately, there are options.
DuffyAmedeo professionals can speak with you about your options. One consideration is how much leverage you have over the debtor. This all depends on your situation. How large is your claim as compared to other claims in the bankruptcy? How vital are the services or products you provide to the debtor. As with much that goes on during a bankruptcy filing, negotiation can be key to getting what you want.
With this in mind, depending on the size of your claim as well as other factors, you may want to consider joining the Unsecured Creditors Committee. The Unsecured Creditors Committee is a court-appointed committee that speaks for all unsecured creditors. They are instrumental in making sure that a debtor has a plan confirmed or that a debtor gets whatever relief they need. They are generally considered a watchdog over the entire chapter 11 case. The committee has separate counsel and conducts investigations and stands up for the rights of unsecured creditors. Serving on such a committee means that you, as a creditor, have a strong voice in the eventual outcome of the debtor’s case.