The short answer
A bankruptcy filing automatically stops most collection efforts and lawsuits against the debtor. Creditors protect their position by filing claims on time and watching how the debtor treats their contracts.
Where it fits in your case
As soon as you learn the other party has filed.
What to expect
Automatic stay. Collection, lawsuits, and many contract actions must stop unless the court allows them.
Proof of claim deadlines are set by the court and must be met.
Preferences. Payments received in the 90 days before filing may be challenged.
Contracts may be assumed or rejected by the debtor, which affects ongoing projects.
Goods delivered shortly before filing may have special priority or reclamation rights.
What we need from you
The bankruptcy notice, contracts, invoices, and a record of recent payments and deliveries.
Common misconceptions
“We can keep collecting.” The stay usually prohibits it.
“Payments we already received are safe.” Some can be clawed back.