QUESTION
Need to pay claims if the customer went bankrupt?
Asked on Nov 23rd, 2015 on Bankruptcy - California
More details to this question:
Had a customer that filed for bankruptcy so they did not pay our invoices. They have return claims on our items and is asking for us to pay them these claims. Would we need to pay these claims before being paid on our invoices or can this be offset against the amount they owe us, which is larger than their claims? Since they filed for bankruptcy anyways would we even need to pay this?
1 ANSWER
Bankruptcy Attorney serving Menlo Park, CA
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Law Offices of Stephen Benda
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Yes, you can do set off under the bankruptcy code, but have to ask the court for relief from the automatic stay.
Answered on Dec 07th, 2015 at 5:55 PM