Since the end of the “Great Recession,” business bankruptcies have decreased to the point where many businesses which extend credit may find themselves with new employees who have never experienced a bankruptcy. While the economy in North Carolina remains strong, it may be time to hold some internal training to remind credit and sales staff what they can and cannot do, and should and should not do, if a customer files bankruptcy.
Depending upon how your business handles incoming mail, you may need to teach individuals what a Notice of Bankruptcy looks like and, more importantly, what it means. Terms like “automatic stay” and “proof of claim” need to be added to their vocabulary. Understanding what a Chapter 7, 11 or 13 bankruptcy is and how the types differ should be fundamental knowledge in a credit department. And, because of recent changes in the law, knowing that a Chapter 12 bankruptcy exists – “family farmer” or “family fisherman” – allowing individuals and businesses in those industries to reorganize and restructure without having to liquidate or face foreclosure.
The lawyers at Hannah Sheridan & Cochran, LLP stand ready to assist you in providing this information to your work force.