Where your claim sits in line
Commercial bankruptcy litigation often comes down to priority. Secured claims are paid from their collateral, expenses incurred during the case are generally paid ahead of most pre-filing claims, and general unsecured claims share what remains. Suppliers who delivered goods in a short period before the filing may hold an administrative claim for some of that value, and sellers may have reclamation rights if they act quickly, so shipping records matter. A creditor that also owes the debtor money may have a right of setoff, but exercising it generally requires the court's permission first.
Claim objections and fights among creditors
Filing a proof of claim does not end the matter, because the debtor, the trustee, or another creditor can object, and the objection becomes a contested proceeding. Disputes arise over the amount, the documentation, whether a claim is secured, and whether it should be pushed behind other claims because of inequitable conduct or recast as an equity interest. Creditors also litigate against each other over lien priority and intercreditor agreements, and those disputes can shape the whole case. Keep the contracts, invoices, delivery confirmations, account statements, and correspondence that show both what was owed and how it was secured.
Settling the deadlines first
We look at the size of the claim, the case's likely distribution, and whether the claim faces challenges that justify the cost of litigating. A claims bar date sets a deadline to file, and missing it can cut off recovery, so that notice should never sit unopened. Where a creditor is also facing a preference demand from the same estate, the two are often negotiated together. If the debtor is selling its business, check whether your contract is being assigned to the buyer, since that can change what you are owed and by whom. In a first meeting we confirm the deadlines, the priority arguments available to you, and what level of involvement the case is worth.
