Posted by Harold Whiteley on April 24, 2002 at 11:46:48:
I would trod very carefully. Bankruptcy Courts are not in the business of helping the person or company filing bankruptcy, but more to safeguard the deemed assets involved in the filing. Creditors line up, with all the BIG BOYS first in line and we pee wees lined up behind them.
I was a manufactuer OEM representative (contracted sales/marketing agent) and I had 7 reps under me in my 9 state territory when my OEM (original equipment manufacturer) filed for Chapter 11, then on to Chapter 13, then finally Chapter 7 (total liquidation). YIPPES!!! I was owed $250K in back sales commissions and designer royalities fees. I never got a dime, with all the large banks and private investors in line ahead of me. By the time they got to us pee wees, the money vault was bone dry!!
You need to touch base with a bankruptcy lawyer on this one, for sure if you decide to proactively proceed with your friend.
Be careful of the “boom-a-rang effect” and don’t let this deal, (if you decide to proceed ahead) come back to bite you in the hinny!!
With warm regards,
Harold L. Whiteley