With the expected continuing market correction of the alcohol beverage industry to consumer demand, wine producers are preparing for potential bankruptcies or shuttering of trade purchaser businesses at the distribution and retail levels. This article explores how alcohol beverage producers should prepare for trade disruption caused by bankruptcies. Bankruptcy is governed by federal law, and bankruptcy cases are exclusively handled in federal bankruptcy courts. When a business files for bankruptcy, its creditors (including suppliers with unpaid invoices) face significant uncertainty as to their ability to get paid. Alcohol beverage producers should be aware of three key issues that will impact their contracting relationships and products in the market in the context of the bankruptcy of a distributor or retailer: (1) the effect of an automatic stay; (2) the potential for recouping certain inventory; and (3) the potential of having certain payments received from the entity filing for b