Q: I collaborated on a book with a client for two years. Now she filed for bankruptcy and says our contract is cancelled.
I have 30 years of experience in writing, editing and publishing. I live in Phoenix. The client, who resides in North Carolina, contacted me to help her write her memoirs. They are fascinating. The manuscript was completed in February 2018 and we were actively seeking an agent or publisher until two weeks ago. She filed for bankruptcy and said I cannot text or email her about it until it's over. She said she gets to keep the manuscript and will reinstate our payment contract. Our current contract spells out a percentage of royalties if the book sells. (I agreed to this arrangement because she has no money.) We worked very closely and there would be no book at all without my role as her collaborator, editor and co-author. I have emails and documentation to support my contributions to her book. I think it will be a best seller when it gets in the right publishing hands. Is there anything I can do to ensure I will get my piece of the pie when the book sells?
A: Yes, you need to contact a lawyer in the Federal district of NC where the bk is pending and have him check the filing out. He can then file, if necessary, the paperwork to intervene in the action and protect your interests. This is rather tricky, so you should not attempt it yourself
A:
Bankruptcy is an extremely complicated set of laws (some state and many federal) so it is a challenge to determine how to answer your questions. First, anyone can file for bankruptcy and later pay some or all of their debts. The issue here is whether or not the exemptions protect her interest in the manuscript. If not, it is property of the estate and may be liquidated by the bankruptcy trustee. You want to make sure you file a proof of claim - if one is required.
I hope this is a little helpful
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