First make sure that the credit balances owed to you are submitted to the bankruptcy trustee. You must put them on notice that the vendor owes you money and become listed as a creditor. As far as deducting credit balances from amounts you owe to the vendor, we suggest that you seek the advice of your legal counsel. The methodology for payments to vendors in bankruptcy can be very specific and depends on how the bankruptcy Trustee wants to handle these types of transactions.
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