Attorney Blake Nelson of Hellmuth & Johnson explains how flooring contractors can protect their interests when customers declare bankruptcy in a Wood Floor Business magazine article. The article outlines the three main types of bankruptcy (Chapter 7, 11, and 13) and emphasizes the critical importance of having lien rights to increase the chances of payment collection. Nelson shares a success story where a contractor’s lien survived bankruptcy, ultimately resulting in full payment despite the customer’s Chapter 7 filing.
Read the full article to learn essential strategies for filing Proof of Claims and understanding how different bankruptcy types affect your business.