Should I sign a contract to do freelance work for a company that has filed for a chapter 11 bankruptcy?

Signing a contract with a company in Chapter 11 might not be a problem. You need to be aware that certain types of contracts (professionals such as attorneys, accountants, brokers, etc., must be approved by the court), while other types of contracts (contract employees, etc.) do not need court approval. The one primary distinction with regard to signing contracts with companies in Chapter 11 is that you are on notice that there have been (and may continue to be) financial problems. You might want to ask them for a copy of their last couple of Monthly Operating Reports (which will provide you with snapshots of their current financial situation). If I entered into such a contract, I would want to make sure to limit my exposure by invoicing them promptly, insisting on short payment terms (due on receipt or net 5 days), and being prepared to stop work for non or late payment. This answer was provided as a public service to a question posed on the Law Q & A website. The answer is based on the information provided and is limited to those facts. Additional information could change the context of the question and materially change the answer.

The court could void any contract you sign with the company. Everything the company does is subject to court approval. So you may want to work without a contract.