Nearly 820,000 bankruptcy filings were filed in 2015. If you’ve received the dreaded notice that a client has filed for bankruptcy, there are a few things you absolutely must do. Filing a client for bankruptcy does not necessarily mean that you do not have any rights and that you will not receive any payment for the amount that the client owes you. However, there are protocols to follow.

Stop contacting the customer

A bankruptcy establishes different rules of communication between the debtor and the creditor. From the moment you receive a bankruptcy notice, you can no longer contact the debtor and request payment. This is called an automatic stay. A trustee is assigned to the account and this trustee oversees all of the debtor’s assets and debts.

Although the bankruptcy notice will generally include the trustee’s contact information, you probably won’t be able to get additional information about the bankruptcy before the meeting of creditors. Also note that the administrator’s office will not provide you with legal advice.

Get a bankruptcy attorney

Bankruptcy attorneys not only represent debtors, they also represent creditors. And bankruptcy law is complicated. If the amount at stake is a substantial sum, you may want to have an attorney at the table with you.

Another sobering part of bankruptcy law is the preference clause, which means that a debtor cannot prefer one creditor over another. Because of this clause in the bankruptcy code, a trustee will go to each creditor that the debtor paid within the 90-day period prior to filing for bankruptcy and request reimbursement. If the creditor is a family member, business partner, or other privileged entity, the trustee can go back a full year to collect the refund. If you receive such a demand letter, a bankruptcy attorney can help you present a defense.

Submit proof of claim

The bankruptcy notice you receive will include information about how much the debtor believes he owes you, why he is owed that amount, and when proof of claim should be filed. It will list the deadline for proof of claim. It is very important that you present this proof of claim; If you don’t, you will lose any right to be paid. On a proof of claim form, you state that you understand what is owed to you. This form is fairly straightforward and can be done without an attorney.

Attend the creditors meeting

Bankrupt creditors will be invited to a meeting of creditors, sometimes called a 341 hearing. At this meeting, the debtor will need to explain how they got into bankruptcy. Creditors can also ask questions of the debtor. Also, a creditor can object to the reorganization or the repayment plan if they feel that their debt is not being treated fairly.

A bankruptcy notice is never a pleasant sight, but there are a few things you can do to secure the highest amount of payment possible. After all, you are owed hard-earned money.