What are the risks of doing business with a debtor?

Minneapolis Bankruptcy attorney Steven Silton discusses the challenges of doing a business with a debtor.

Contact Steven Silton

Email: [email protected]

Phone: (612) 260-9003


The risk of doing business with a debtor as an unsecured creditor is that you’re claim can be exposed to either a discharge or to be able to be paid out a substantial reduced rate. It’s very important when you’re dealing with a company that you’re aware is in financial distress to tighten your credit terms and to make sure that any payments are paid within what’s call an ordinary course, that you’re not providing any unique or special payment terms.