Review of We’re Not Done Here Yet! by Kevin Wiley, Esq. Credit Congress Session 33065
WOW – was this class an example of how great Credit Congress is each and every year. I have attended a couple dozen Credit Congress’ in my 30 plus years of working in credit. I learn many new things each year and am reminded of things that I “forgot” a few times each year too. At Credit Congress in June 2024, I attended a class Wednesday morning that taught me something I didn’t know and has stayed on my mind since. Here is how it went:
Kelley Kunz and I are sitting next to each other in the class. The class is being taught by a lawyer from Texas (Kevin Wiley from Hicks Law Group) who is quite enthusiastic, engaging, and obviously has a great deal of experience and knowledge. These are all the things needed on the last morning of the conference. [side note, I have attended classes taught by his legal partner in the past but not by him – she is also a great speaker.] He had great stories of first-hand experience, which I always appreciate – that “in the trenches” feel. He also had some giveaways for those that participated in the class. Class is going along, and we are all involved in the topic of bankruptcy.
Mind you – this was not a beginning bankruptcy class – this is more tricks and tips and trends kind of class. Then, all of a sudden, he says something that takes the room over. Those who were taking notes – popped their heads up (me). Those that were looking at the speaker sat up straight- you could visibly see in the room that something was said that grabbed everyone’s attention. Here is what he said:
If you have a situation where the personal guarantor files bankruptcy BUT the business itself has not filed bankruptcy– the bankruptcy stay rules still apply to the business. He repeated himself knowing he caught the room – that we as creditors cannot continue to call/contact a business to inquire on payments status, etc. if one or more of the guarantors you have associated with that business have filed bankruptcy. It makes sense if you think about it and, obviously, I had not thought about it. The speaker went on to state that we as creditors can continue to send invoices for products purchased as per usual and you can continue to send statements (do not write any notes on the statement). You can continue to get payments from the company – you just cannot contact them about wanting payment as the bankruptcy stay is in place. The credit managers in the room asked if this had actually happened – he said YES, a few times that he knew of in Texas and Florida. WELL – mind blown!
I have not had this situation in a bankruptcy, so I have not violated the bankruptcy stay rules – and luckily, I know this now and won’t violate it in the future. I don’t want to get my company in trouble or fined because I didn’t know or understand the rules. Now I need to work out how to track this type of situation. For example – in a business bankruptcy filing your company is listed as a creditor and you are notified. In a personal bankruptcy, if the filer has been a guarantor for a company how do the creditors of that business get notified the guarantor has filed? Do you, the reader of this article – have any thoughts on this?
So, now you know a new thing I learned, and I am happy to pass on the information. I know that when I see this instructor teaching a class again – I will be likely to attend! Credit Congress is a wonderful educational experience we should all have. I am grateful for insights like the one above and the many, many others I have received at Credit Congress. These insights can come from attending classes, visiting with vendors/exhibitors, and of course, networking with other credit professionals in and out of my field that participate in the conferences.
Start planning now to attend Credit Congress next year in Cleveland, OH in May 2025. Registration is open and Early Bird Pricing ends December 6, 2024. I will see you there and then we can discuss at the closing night dinner what you didn’t know that you didn’t know until you found out at Credit Congress.
by April Tanner, CCE, Kimball Equipment Company