This misrepresentation can extend the creditor's reclamation rights more than ten (10) days and may be grounds to avoid discharge in bankruptcy from this particular debt.Once a customer files bankruptcy, quick action can help collect a receivable and avoid preference problems.If a creditor is genuinely concerned with insolvency, it is generally better to get payments from anyone other than the debtor.
This is not a comprehensive explanation of bankruptcy and will not deal at all with many issues.
If a debtor refuses to supply any financial information, this should only add to a creditor's concern.
If the debtor does supply incorrect financial information, this may constitute a written misrepresentation concerning solvency.
We have generalized and simplified many legal concepts, so that the explanations are short, uncluttered and easily understandable.
Every set of facts and circumstances raise different legal issues.