Talk to a Lawyer
Enter a zip code to speak to a Lawyer that serves your area.

Select the type of Lawyer you need
How do I address overseas manufacturers that continue to pursue past debts after I have filed for bankruptcy?
I started an online business a couple of years ago where I had arrangements with over sea manufacturers. I had unexpected situations come up and the business went bad, and thus had to file for bankruptcy. The over sea manufacturer keeps contacting me for nearly $10k in inventory charges I still owe them. I don’t have any money however. What can I do here?
This site does not provide legal advice and users of this site should not interpret any of the information presented here as legal advice. The information provided merely conveys general information related to commonly asked legal questions. We are not a law firm and the employees responding to questions are not acting as your legal attorney. You should ultimately consult with a Lawyer for your case.

Answers (1)
Bankruptcy laws are complex and can confuse even the most seasoned practitioner. In general, however, bankruptcy works as follows: once a debtor (the person who owes money) files for bankruptcy and the court approves the filing, the creditors (the people who are owed money) can only collect their debts according to the process established by the court. Once the bankruptcy process is complete and everyone has been paid the amounts approved by the court, creditors cannot pursue the previous debt they may have had against the debtor. In general, this should include domestic and foreign (overseas) creditors.
One key part of the bankruptcy process is to list all outstanding debts on the bankruptcy schedule. This ensures that these creditors will be notified of the proceedings and will be included when the court determines how to settle these outstanding debts. If a creditor has been left off the bankruptcy schedule, a bankruptcy attorney can take steps to reopen the case and try to rectify the situation. It is important to remember that only debts incurred prior to the filing will be erased through bankruptcy. Debts accrued after filing for bankruptcy will still be due to the creditors.
You should contact a bankruptcy attorney to determine what steps should be taken to inform the creditors of the bankruptcy filing and to decide if the case should be reopened to address any previous oversight. The attorney would also be able to determine if any laws exist that might prevent the overseas manufacturer from being included in the original bankruptcy filing.
References:
Posted by Jeff Rickman on 21 Jan 2010
1 person found this useful
(2 Votes)