What remedies do you have to recover goods shipped to a company in the weeks leading up to its bankruptcy? As to those goods shipped 45 days prior to a debtor’s filing, Section 546(c) of the Bankruptcy Code provides a reclamation right to creditors to recover such goods. This may provide you with the ability
Goods
What Constitutes “Goods” Under Bankruptcy Section 503(b)(9)?
By Fox Rothschild LLP on
Posted in Bankruptcy Law Basics
As discussed in the prior post, creditors may receive administrative-expense priority for “the value of goods received by the debtor within 20 days before” the debtor’s bankruptcy filing “in which the goods have been sold to the debtor in the ordinary course of business.” 11 U.S.C. § 503(b)(9).
The question then becomes what constitutes…
Bankruptcy Code Section 503(b)(9): Goods Shipped Within 20 Days
By Fox Rothschild LLP on
Posted in Bankruptcy Law Basics
It is your worst nightmare. You ship goods to a company, only to find out that shortly after shipment, it files for bankruptcy. Now, instead of receiving payment for those goods, you are simply one of many creditors of the debtor’s estate. What remedies do you have under the Bankruptcy Code to recover the amount…