Bankruptcy Exposure

[Zachary]

What is the name of your state? FL

Many years ago we did business with a company that filed bankruptcy a couple months afte paying our final invoice.
Shortly thereafter, a bankruptcy court or representative ordered us to sned back the final payment since it was given to us within about 60 days of the bankruptcy proceeding.

Currently we have a contract with an out of state company that knows their "mother" company is going to file bankruptcy, but they have told us not to be concerned and in fact, they are paying inovices on a timely basis.

Given our expereince of years ago, should we include anything in a contract or written agreement that would protect us from having to give back monies that were rightfully paid to us in case there is a bankruptcy filing?

 

[loku]

The general rule is that the court has the power to avoid payments made to you within 90 days before the petition in bankruptcy was filed, if the payments were for preexisting debts and if the payments are more than you would have gotten as your share from the bankruptcy proceeding. A contract would not change the application of the rule.