Bankruptcy monitoring for accounts receivable teams
First to know, first to act.
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The bar date doesn't wait – and neither does the trustee
When a customer files bankruptcy, the AR team is on the clock. The automatic stay kicks in immediately, stopping collections. The proof-of-claim bar date is typically 70–90 days from the filing – miss it and the claim is disallowed.
AR teams that find out from a trustee notice letter are usually already behind. The ones that act first – putting holds, filing claims, adjusting reserves – recover more and waste less staff time chasing uncollectible balances.
How CaseWarn helps
Immediate flag when any account files
CaseWarn sends an email alert the morning after a customer files Chapter 7 or 11. Name, chapter, court, case number – everything you need to act immediately.
Prioritize the collections queue
Knowing which accounts are in bankruptcy lets you deprioritize futile collection calls and focus your team on accounts that can actually pay.
Never miss a bar date
With early notice, you have the full proof-of-claim window to work with – time to pull invoice documentation, consult counsel, and file a complete claim.
Real scenario
An AR team manages receivables for 180 active accounts across three product lines. A $92,000 account files Chapter 11 on a Friday afternoon. Monday morning, the CaseWarn alert is waiting. The AR manager puts an immediate credit hold, stops the dunning sequence, and routes the account to legal. The proof of claim is filed 12 days later with complete invoice backup. The account exits Chapter 11 and pays 60 cents on the dollar – far better than typical unsecured recovery.
What you get with CaseWarn
- Stop dunning sequences on bankrupt accounts before wasting collector time
- File proofs of claim early with complete documentation – not rushed
- Set accurate bad-debt reserves as soon as the filing is confirmed
- Monitor every open account on the AR ledger simultaneously
Plans from $9/mo
One company is always free – no credit card required.
How it works
Add your customers
Upload a CSV or add names one by one. No EINs or SSNs required.
We monitor daily
CaseWarn checks every US federal bankruptcy court every morning.
You get an email
Match found? We email you: name, chapter, court, case number.
Frequently asked questions
What is a proof of claim and when do I need to file one?
A proof of claim is the formal document you file with the bankruptcy court to establish your right to payment from the estate. File it by the bar date – typically 70–90 days from the filing – or your claim may be disallowed. Include invoice numbers, amounts, and supporting documentation. An early alert gives your team the full window to prepare a complete filing.
What is the automatic stay and how does it affect collections?
The automatic stay is an immediate court injunction that takes effect the moment a debtor files bankruptcy. It stops all collection activity: calls, letters, lawsuits, and garnishments. Violating it can result in court sanctions. Once CaseWarn alerts you, immediately flag the account, stop the dunning sequence, and route to legal.
What is the bar date and what happens if we miss it?
The bar date is the court-set deadline for creditors to file proofs of claim. Miss it and your claim may be disallowed entirely – courts rarely grant exceptions. Bar dates are typically 70–90 days from the filing date. Companies that find out from the trustee letter are usually already weeks behind.
How should we adjust bad-debt reserves when a customer files bankruptcy?
For Chapter 7, write the balance to bad debt immediately – liquidation recovery is typically low and uncertain. For Chapter 11, reserve conservatively based on the proposed creditor recovery percentage in the reorganization plan. CaseWarn's alert gives your accounting team the earliest possible trigger to document the impairment.
See also
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