Collecting debts owed by a bankrupt customer by submitting this form but the steps a business needs to take to collect a debt from a bankrupt customer are usually surprisingly routine then you will likely lose your right to be a part of the bankruptcy proceedings and forfeit your right to be paid from the proceeds of the bankruptcy. If after you file for bankruptcy a creditor continues its collection actions against you the creditor may be violating bankruptcys automatic stay read on to learn when collection activities violate the stay and what you can do if a creditor continues to collect a debt in violation of the automatic stay. 11 things to do when a client files bankruptcy unfortunately you cant collect on the debt but you can attempt to make a deal to get paid what is owed by carolyn m brown. The bankruptcy trustee determines how much the debtor can afford to pay out of their salary each month and then the debtor pays that amount to the trustee which the trustee then distributes to the creditors the creditors usually do not get paid out the full amount they are owed often its much less file a proof of claim. The collection of this post petition debt is important not only to the municipality but also to the bankruptcy debtor as the municipalitys failure to collect may artificially place debtors in a comfort zone where they believe that all financial obligations owed to the municipality are being paid through the bankruptcy case
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