Debtor’s Bankruptcy. How to collect your money?

DOOM AND GLOOM

2019 saw many companies globally going into liquidation. This trend has only accelerated in 2020 during covid -19. With steep recession being seen in countries across the world, economies deteriorating, investment decreasing, currencies devaluing, we all have cause for concern. These factors are negatively impacting companies globally, causing many to declare bankruptcy.

With so many companies, including giant retailers: FNG group, Pier 1, Centric Brands and hundred others going into liquidation during these challenging times, suppliers, manufacturers, and shippers are, understandably, being very cautious whom they supply goods to; and this is making a massive impact on suppliers’ bottom lines.

BANKRUPTCY LAWS

In many countries, it is not possible to continue collection actions after a company has filed for bankruptcy. In fact, you as the creditor may be violating a bankruptcy law by continued action, and have a lawsuit filed against you! Suppliers are treated as unsecured creditors and can take part in long-lasting company bankruptcy process.

The laws, obviously, vary from country to country, and unless you are fully aware of the local bankruptcy laws and how to follow them in the country your debtor is in, it will be very difficult to collect your debt.

A LIGHT AT THE END OF THE TUNNEL

Recoupex supports and legally represents its clients through the bankruptcy process. With our global network of attorneys, we stand with you in a fire.

2 BEST ADVICE, you will Ever hear.

1. Don’t wait until your overseas buyer goes bust! The longer you wait, the less chance we have to recoup your money.
2. Have more than 1 retailer to supply goods to. While you work through the legal process with one delinquent buyer, your business can still continue to earn.