“Don’t Reclaim! Get Paid on Your 20 Day Claim!”
Have a claim for goods sold to a debtor just before bankruptcy was filed? This article may interest you! Often business people are aware that they can file a motion to reclaim goods that were shipped to a debtor shortly before the debtor filed a chapter 7 or a chapter 11 bankruptcy petition. But did you know you can file a motion to get paid… 100% of your claim on an administrative priority basis? That’s right. If the debtor sells your goods while the debtor is in bankruptcy you can get a special super-priority claim and get paid 100 cents on the dollar… not share pro rata with all the rest of the creditors! So why take back the goods when you can get paid instead! That’s really what you wanted in the first place, right? The 20 day claim!
Check out this recent Publication by Karina Pia Lucid, Esq.: https://www.highroadsolution.com/file_uploader/images/BusinessLawV36N2Oct2012.pdf