Hi all,

Like to find out in FOB trade, what will happen if my buyer or my seller declare bankruptcy? What are the steps to do to protect the company's interests?

Thanks for your attention

Quoting from [cleo]:

Hi all,

Like to find out in FOB trade, what will happen if my buyer or my seller declare bankruptcy? What are the steps to do to protect the company's interests?

Thanks for your attention

i think thats so important to serch  or check anything about your dealer befor the trasaction,so most  useful way is preparing before doing

Quoting from [cleo]:

Hi all,

Like to find out in FOB trade, what will happen if my buyer or my seller declare bankruptcy? What are the steps to do to protect the company's interests?

Thanks for your attention

If you have paid for your goods, the goods is yours . No matter where the goods was at the origin of the purchase..  If he was bankcrupt before he sold it , then its up to the local laws of the company where it is located.  But it will be hard for you to get the money or the goods back then .

Quoting from [cleo]:

Hi all,

Like to find out in FOB trade, what will happen if my buyer or my seller declare bankruptcy? What are the steps to do to protect the company's interests?

Thanks for your attention

Hard to say. if they declare bankruptcy before your business, you can easily find out. if after your goods have been shiped, it will depend on your luck. but most situations are that it  will take a long time and money and even your patience to get your advance back

Quoting from [cleo]:

Hi all,

Like to find out in FOB trade, what will happen if my buyer or my seller declare bankruptcy? What are the steps to do to protect the company's interests?

Thanks for your attention

  you have to court of Law....

Quoting from [cleo]:

Hi all,

Like to find out in FOB trade, what will happen if my buyer or my seller declare bankruptcy? What are the steps to do to protect the company's interests?

Thanks for your attention

1 If you the goods haven't been shipped yet, the goods is yours . you can sell to anyone else

2. if the goods have already shipped, you must find new buyer at destination.

This is one of reason why a L/C is used. if you use LC at sight- irrevocable- by negotiation any bank in your country, you will get the money from negotiating bank after shipping and your document clear/approved by negotiating bank..so you have crossed a major problems. 

Don't used LC by payment because your payment depend on buyer instruction.

Sutanto

Quoting from [cleo]:

Hi all,

Like to find out in FOB trade, what will happen if my buyer or my seller declare bankruptcy? What are the steps to do to protect the company's interests?

Thanks for your attention

If your purchasing goods FOB and you are using a forwarding agent, assuming your terms are deposit and balance on shipping, then your risk is limited to the deposit.  Once your agent recieves the goods on your behalf for shipment, they're not getting them back or, at the very least, your not going to release any more funds.   

If the terms are L/C, well no doc's no payment!  Hopefully you have established credit with your Seller.

If, on the other hand, you are shipping goods, the risk shifts to your company if you have not established L/C terms or some form of prepay.

As to the bankruptcy laws in the US, depending on who the party in bankruptcy is and if there are assets involved, will determine whether a claim with the bankruptcy court will be fruitful.  The debtor must list his/her creditors and they must be notified.  At that time you will the opportunity to file your claim.

Dave Smith 

Quoting from [cleo]:

Hi all,

Like to find out in FOB trade, what will happen if my buyer or my seller declare bankruptcy? What are the steps to do to protect the company's interests?

Thanks for your attention

It doesn't matter if your own is still running!

Quoting from [cleo]:

Hi all,

Like to find out in FOB trade, what will happen if my buyer or my seller declare bankruptcy? What are the steps to do to protect the company's interests?

Thanks for your attention

Quoting from [cleo]:

Hi all,

Like to find out in FOB trade, what will happen if my buyer or my seller declare bankruptcy? What are the steps to do to protect the company's interests?

Thanks for your attention

Quoting from [cleo]:

Hi all,

Like to find out in FOB trade, what will happen if my buyer or my seller declare bankruptcy? What are the steps to do to protect the company's interests?

Thanks for your attention

If you buyer or seller in China goes bankrupt, according to Chinese Bankruptcy Law, the bankrupt company must enter one legal procedure of liquidation, it means, if you are one of their debtees, you can apply to be joined into the list of debtees, and share their exist property, which enable your creditor's rights be realized partly. Yes, only Partly, according to your share percentage in the total debts.