An Ounce of Prevention . . . .
Recently, a client was lamenting a situation where it sold a significant amount of product to a customer, only to learn weeks after delivery, the customer filed for bankruptcy. In today’s economy, this situation happens all the time.
If you find yourself in this position, or in any situation where a customer or supplier becomes involved in bankruptcy, you should quickly reach out to counsel for guidance and assistance. It turns out in the example above, there may be some interesting remedies provided under law if the supplier acts quickly and correctly. However, even waiting a few extra weeks can be detrimental to a claim.
Turn over a new leaf and become proactive rather than reactive when it comes to legal matters in your business. As they say, “an ounce of prevention is worth a pound of cure.”