Many small businesses will struggle to survive the financial challenges brought on by the novel coronavirus. Historically, Chapter 11 of
In these economically unstable times, companies are increasingly experiencing problems with customers who make payments to them and then file bankruptcy. If a customer pays your company and then files a bankruptcy petition within 90 days of making the payment, the customer’s bankruptcy trustee may demand that you return the payment to him. A payment made by a debtor within 90 days before he files bankruptcy is called a preference.
Unless your company operates on a strictly cash basis, you have accounts receivable. What most companies do not understand is