Quick question about QB & Chapter 11

Is there an established senerio for Quickbooks when a company files Chapter 11? Would it simply be easier to start a new company file or is there another procedure that works better? We're not sure at the moment how to
seperate pre-filing debt from post-filing debt without a lot of work and expensive help from our accounting firm... and I'm sure that's just the first of many problems we will encounter.
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One client we worked with did just that as per the trustee's instructions. The old company just sat there with some minor transactions as the bankruptcy was worked out, the "new" company books picked up from there. But I'd suggest talking to the trustee and do what they tell you.
Just set up the "new" company and copy over the chart of accounts, the vendors, customers, employees, etc.
It's going to be costly to merge the separate books together for tax purposes.
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Paul Thomas, CPA
www.paulthomascpa.com
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John wrote:

I have a client who filed chapter 11 last month. We have been instructed to start a new file and let the old one die. Just like the company did. You'll need to make sure all of the liabilities match the paperwork filed with the courts.
As for starting the new file. My initial thought was to export the old COA, vendors and customers. My client received a Monthly Operating Report (MOR) file that needs to be filled out each month. The filing requirements are very strict so I decided that our initial chart of accounts needed to match the Income statement included in the MOR file. Any thing else would be reported on the supplied "other page". We were also told that all changes to the MOR file had to be approved by the court so keeping our financials the same as the MOR seemed to make the most sense. Treat the new file as if it is a new company. Just record the intitial deposit using Owner's equity or Partner contribution (depending on company type) and then start recording the transactions going forward like you normally would. As the court decides what is pre vs post petition you can adjust the files accordingly.
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