You are working as a paralegal in the law firm of Dewey, Cheatum, and Howe, and you are given a Chapter 11 notice of bankruptcy filing for Sears in the Northern District of Illinois. Explain what happens to each creditor's claim and what they should do.

1. Mr. Howe gives you a copy of the notice and tells you that he has a client that supplies "muscle magazines" to Sears, and currently has unpaid invoices of $50,000 from a shipment he sent to Sears about 10 days ago. What do you tell Mr. Howe?