Your Biggest Customer Just Went Bankrupt - Now What?
According to the American Bankruptcy Institute (ABI), 69 percent of the 61,148 business bankruptcies declared during the 12-month period ending in March 2010 were Chapter 7 liquidations. In most chapter 7 liquidations, unsecured creditors are not made whole. Many don't receive any part of what they are owed. If one of your customers enters Chapter 7 bankruptcy, there is a good chance your company won't recover any part of what it is owed. Once it is confirmed that the company has declared bankruptcy, avoid digging yourself further into the hole. Evaluate all of your current business with the company.