KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and white list ken@kirschenbaumesq.com ******************************* Bankruptcy issue November 27, 2019 *********************** Bankruptcy issue *********************** Ken, I have a question in regards to a customer bankruptcy. I’m somewhat aware about the debtor in possession situation for either a new contract or an assumption agreement. However when does that become in effect? When we receive paperwork from the court or does that start when we find out about it? Yesterday we found out (via the nightly news) Dean Foods has filed for bankruptcy, and they owe us money for service work, some is past 90 days, some is as recent as last week. Can we still pursue collection if we haven’t received a notice from the court or is seeing it on the news notice enough? Can we still file any liens that would still be timely on the property? Can they pay with a credit card or would the Trustee possibly chase that money down require us to give it back (they have used the credit card method for years due to a slow AP setup within)? And lastly, they pay for their monitoring on an annual basis, which is paid until January or February 2020, do we still have to continue service until that date since its paid or can we cancel due to the bankruptcy provision in our contract? Jason *********************** Response *********************** You can't do anything except file a proof of claim and insist on a new contract or assumption of contract -- but debtor has time to assume an executory contract [60 days unless a request to extend the time is made]. This is not something you should be doing on your own. Engage K&K's bankruptcy department to handle this for you. Fee is modest to file the proper claim and then negotiate the continued service. Do not wait -- you should not be providing service without proper documentation - you contract. You don't need to get anything from the court - now that you know about the filing you are bound by the automatic stay that prevents collection efforts against the debtor. ********************* To order up to date Standard Form Alarm / Security / Fire and related forms, click here:www.alarmcontracts.com ************************* CONCIERGE LAWYER SERVICE FOR THE ALARM INDUSTRY PROGRAM You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** NOTICE: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles *********************** THE ALARM EXCHANGE
This area is reserved for alarm classifieds, alarm company announcements, solicitations, offers, etc. There is no charge to post a listing here.Include your contact information, phone, email and web site. If you would like to submit a post, please send an email to ken@kirschenbaumesq.com. To create a reciprocal link to our website, click here. ************************************************ Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
