As economic conditions continue to worsen, you may expect that more customers of textile rental service companies will declare bankruptcy. The economic crisis affects both large and small customers. If your customer goes bankrupt, what happens to your outstanding accounts receivables? Also, what risk do you face that a bankruptcy trustee will seek to recover payments made within the 90-day preference period before a bankruptcy filing? TRSA members should understand the bankruptcy laws and know their rights in the event that a customer decides that it no longer can stay in business and files bankruptcy.
 
Bankruptcy Chapters ...