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FAR and DFARS › FAR Part 52: Solicitation Provisions and Contract Clauses › Subpart 52.2

FAR 52.242-13 Bankruptcy.

The codified text (eCFR, as of 2026-10-02). Under the Revolutionary FAR Overhaul ↗, agencies follow class deviations with new text for many parts while the formal rules go through the Federal Register: check the solicitation and your contract's clauses, which rule.

In plain English

This clause requires a contractor to notify the Contracting Officer in writing if the contractor enters into bankruptcy proceedings, whether voluntary or involuntary. The notice must be sent within five days of the bankruptcy filing and must include specific details about the filing and affected Government contracts. This matters because it keeps the Government informed about the contractor's financial status while the contract is still open.

Applies to: Contractors who enter bankruptcy proceedings while a contract is active

What it requires

  • Notify the Contracting Officer responsible for administering the contract in writing of the bankruptcy
  • Send the notification by certified mail or an authorized electronic commerce method
  • Furnish the notification within five days of the initiation of the bankruptcy proceedings
  • Include the bankruptcy petition filing date, the court identity, and a listing of Government contract numbers and contracting offices for contracts with unpaid final payment

Key terms: bankruptcy · Contracting Officer · certified mail · electronic commerce method · final payment

Written by AI from this section's text. A guide, not legal advice: the text below rules.

The text

As prescribed in 42.903, insert the following clause:

Bankruptcy (JUL 1995)

In the event the Contractor enters into proceedings relating to bankruptcy, whether voluntary or involuntary, the Contractor agrees to furnish, by certified mail or electronic commerce method authorized by the contract, written notification of the bankruptcy to the Contracting Officer responsible for administering the contract. This notification shall be furnished within five days of the initiation of the proceedings relating to bankruptcy filing. This notification shall include the date on which the bankruptcy petition was filed, the identity of the court in which the bankruptcy petition was filed, and a listing of Government contract numbers and contracting offices for all Government contracts against which final payment has not been made. This obligation remains in effect until final payment under this contract.

(End of clause)

Sections it refers to

  • 42.903 Solicitation provision and contract clause.

Sections that refer to it

  • 42.903 Solicitation provision and contract clause.

← 52.242-6-52.242-12 [Reserved] · 52.242-14 Suspension of Work. →

Rule changes for FAR Part 52

Source: eCFR, 48 CFR chapters 1 and 2 (GPO GovInfo bulk data) ↗. Plain words for the terms: glossary.

FAR 52.242-13 Bankruptcy · SpendQuery