Expert: Terry Leeders - 1/10/2008

Question
Our company has only experienced a few creditor bankruptcies (the last one was 8-10 years ago). About 11/07/2007, we were told by an attorney that a company who owed us moneys (individual - not an LLC or Inc.) had filed in Chapter 7 Bankruptcy in Utah. We have not yet received any notification (copy) of the debtor's Petition in Bankruptcy; and we have not been able to submit any Proof of Claim for the balance owed. Q. If the Petition was filed about 11/7/2007, how long do we have to submit a Proof of Claim to establish our position as an unsecured creditor (we actually hold a lien against personal real estate and might be secured)? Q. How can we establish that we did not receive proper or official notification?

Answer
Usually you have 90days from the date of the meeting of creditors to file your claim if it is a chapter 13.  If it is a chapter 7, you will get a notice from the court if there are assets available.  You should meet with an attorney to make sure your claim is protected and for collection advice, as you may be able to bring a motion to collect the debt/foreclose as needed.  You can contact the Bankruptcy court to determine if they have filed or not.