Chapter 9 - § 9.4 • INTERNAL RESPONSES TO A BANKRUPTCY FILING

• Jurisdiction: Colorado

§ 9.4 • INTERNAL RESPONSES TO A BANKRUPTCY FILING

Companies should establish bankruptcy notification procedures throughout their organizations and with outside collection agents to ensure that the appropriate departments, such as legal, sales, and accounting, receive timely notice of a bankruptcy filing. Once the initial bankruptcy notice is received, a company may want to file a change of address with the bankruptcy court to prevent delay in receiving subsequent notifications from the bankruptcy court. Most importantly, it is absolutely critical that, upon receipt of a bankruptcy notice, any and all attempts to collect on a pre-petition debt owed by the debtor cease at once.

Practice Pointer
If the debtor is an individual, be sure to keep a copy of the initial bankruptcy notice as it provides the debtor's full Social Security number. This is the only document creditors receive with the debtor's full Social Security number. If a motion for relief from the automatic stay is to be filed, the Social Security number will be needed to ascertain whether the debtor is in the military.

The initial notice of a debtor's bankruptcy case lists the name of the debtor, the court in which the bankruptcy case is pending, and the bankruptcy...