If a company owes $50,000 to another company in services and then goes bankrupt, any hope to getting that $?

Question

Any hope to the service company in getting that money? Seems unfair to do work and not be protected.

Answer 1

It would depend on the number of creditors and the type of creditors. The chances are not very good, because there are probably creditors with hard goods. These would have a signed agreement, and any money lenders would, again by agreement, first priority on any assets.

Answer 2

Depends on the lawyers and the other creditors...if it appears that to the bankruptcy judge that the bankrupt company ran up $50,000 in services and then immediately filed bankruptcy and it appears the intent was to do that when the services were rendered, then that would be considered fraud and ordered to be excluded from the bankruptcy.

Answer 3

only if they have assets that must be liquidated due to the bankruptcy