cwdunn2100
Junior Member
What is the name of your state? South Carolina - Bankruptcy is filed in New Jersey
Hi, we had a client file chapter 11 in New Jersey effective August 2006. They owe us money from invoices sent in August of 2005. However, they sent us two payments in January of 2006. There is still a balance due on our invoices. I remember from a business law class in college that there is a look-back provision for (I believe) 180 days before a bankruptcy is filed. I seem to remember that creditors could be forced to pay back payments received during that look-back period. Am I right about this? Since the we received the payments in January 2006 and the Chapter 11 wasn't made effective until August 2006 are we okay? I'm just concerned about having to pay back the money we received. Thanks for you help!What is the name of your state?
Hi, we had a client file chapter 11 in New Jersey effective August 2006. They owe us money from invoices sent in August of 2005. However, they sent us two payments in January of 2006. There is still a balance due on our invoices. I remember from a business law class in college that there is a look-back provision for (I believe) 180 days before a bankruptcy is filed. I seem to remember that creditors could be forced to pay back payments received during that look-back period. Am I right about this? Since the we received the payments in January 2006 and the Chapter 11 wasn't made effective until August 2006 are we okay? I'm just concerned about having to pay back the money we received. Thanks for you help!What is the name of your state?