When does reclamation take place in a bankruptcy proceeding?
Minneapolis Bankruptcy attorney Steven Silton explains that reclamation takes place immediately following a bankruptcy filing.
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Reclamation will take place immediately following a bankruptcy filing. Under certain circumstances where creditors have essentially shipped product or shipped goods and a debtor files bankruptcy, that creditor can actually go and reclaim the product pursuant to a state law provision that is recognized in bankruptcy. It’s an incredibly valuable remedy when somebody has been stuck with shipping goods or products right prior to a bankruptcy filing.