How do you get paid if the person who owes you money files bankruptcy?

Answer 1

It is highly possible that you will NOT get paid. The action of the Court can extinguish his obligation to ever pay. Depending on the facts and circumstances of the particular bankruptcy case, and what you are owed, you may have the right to recover certain property, or some portion of the debt. Again, this is determined by the Court. Normally you are contacted but as you are aware of being a creditor, you should file a "proof of claim", on or before the "bar date" (the date by which creditors must be on record or are barred from asserting a claim), and follow the procedures and requests from the Court to support your right to any possible recovery. You may have the right to provide the Court additional information if you feel the debtor is not revealing all of their assets or you are being treated unfairly compared to other creditors.