Legal Question in Bankruptcy in Illinois

Collection from Chapter 7 Debtor

As a vendor, we required a client to pre-pay for our services as we knew they were going to file bankruptcy. They filed for chapter 7 within 90 days of making a payment to us, and presently are requesting a ''refund'' for the work completed. Does our knowledge of impending action exempt us from this obligation?

Asked on 10/01/02, 4:12 pm

1 Answer from Attorneys

Lawrence A. Stein Aronberg Goldgehn Davis & Garmisa, LLC

Re: Collection from Chapter 7 Debtor

Its not your knowledge that allows you to deny the request, but rather that you shipped the goods to the debtor before the bankruptcy. I would need to review your documents, but you need not at this time refund the money. Please call me. Larry Stein (630) 221-1755.

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Answered on 10/01/02, 4:15 pm

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