Businesses continue to receive notices that their customers have filed bankruptcy.
Many of them are writing off significant losses each year as a result. Despite the frequent use of bankruptcy by debtors, many business owners and managers have little or no idea of the post-bankruptcy remedies available to them. Once bankruptcy is filed, you are subject to the automatic stay. You no longer have a right to prosecute any lawsuits anticipated or pending against the debtor. You no longer have the right to repossess collateral in the possession of the debtor without prior court order.