My Seller Declare Bankruptcy?

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

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

  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

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