When a customer files for bankruptcy, most businesses panic and immediately write off the debt. That is often a costly mistake.
While the “Automatic Stay” stops immediate collections, it does not mean your money is gone forever. Bankruptcy proceedings are complex, deadline-driven, and filled with opportunities for savvy creditors to recover funds. Nexa Collections ensures you don’t leave money on the table. We handle the administrative burden of bankruptcy claims so you can focus on your business.
The “Unclaimed Money” Reality
Did you know that in “Chapter 7 Asset Cases,” billions of dollars go unclaimed simply because creditors miss the deadline to file a “Proof of Claim“?
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The Stat: Industry data suggests that a significant percentage of unsecured creditors never file paperwork, walking away from potential payouts. We ensure you are in the line to get paid when funds are distributed.
What Bankruptcy Recovery Services Do?
1. Filing the “Proof of Claim”
The court will not send you a check automatically. You must file a specific legal document detailing what you are owed and why.
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Our Role: We gather your invoices and contracts to file a timely, accurate Proof of Claim. If the trustee liquidates assets, you will be on the official list for distribution.
2. Reclamation Rights (The 45-Day Rule)
Did you ship goods to the debtor recently? Under bankruptcy law, if you delivered goods within 45 days of the bankruptcy filing, you may have “Reclamation Rights” to demand those goods back before they are sold off.
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Identify these opportunities immediately and file the necessary Reclamation Demands to recover your inventory.
3. Monitoring the “341 Meeting” & Dockets
Creditors are invited to the “Meeting of Creditors” (341 Meeting) to question the debtor, but busy business owners rarely have time to attend.
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Still you must monitor court dockets for asset discoveries, dismissal of cases (which allows you to resume immediate collection), and distribution updates.
Understanding the Chapters (And What They Mean for You)
Chapter 7: Liquidation (The Fire Sale)
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The Scenario: The business is closing. The court trustee sells all non-exempt assets (equipment, real estate, inventory).
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Your Move: We watch for the “Notice of Assets.” If the trustee finds money, we ensure your claim is filed instantly.
Chapter 11: Reorganization (The Comeback)
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The Scenario: The business stays open but restructures its debt. They usually pay creditors pennies on the dollar over time.
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Your Move: We review their “Plan of Reorganization.” If the plan is unfair or feasible, creditors can object. We help you vote on the plan and ensure you receive the promised payments.
How We Protect You
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Stop the Harassment Risks: Violating the “Automatic Stay” (calling a bankrupt debtor) can result in massive fines for your company. We act as a firewall, ensuring all communication goes through proper legal channels.
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Preference Defense: Sometimes, trustees try to “claw back” payments you received before the bankruptcy (called a Preference Action). We help validate that those payments were made in the “Ordinary Course of Business” to protect your cash.
Don’t Assume It’s a Total Loss
Bankruptcy is a legal maze, but it is also a path to repayment for those who know the rules.