Bankruptcy
Jan. 17, 2007
Right to Reclaim
FOCUS COLUMN - By Robert L. Eisenbach III - What if you ship goods to a company that goes bankrupt? Some recent legal developments soften the blow for sellers.
By Robert L. Eisenbach III
Although vendors sell goods to get paid, it doesn't always work out that way. If the customer is insolvent or files bankruptcy, the vendor may be stuck. To make matters worse, some customers may load up on inventory, then file bankruptcy without paying. Regardless of why it happens, no one wants to ship goods and not get paid.
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