We use your All-in-One contract.  A client of ours has a track record of 'slow pay'.  It was just announced on the evening news that this customer has filed for Chapter 11 (Reorganization) bankruptcy.  They are currently over 30 days past due for monitoring services (which is not uncommon).  They are past their initial term, and are mid-stream on year-to-year renewals.  I do not have a UCC filed.
    We have not been officially notified of the bankruptcy.  With the recent Chapter 11 announcement, would it be prudent to stop additional losses that would result from continuing monitoring services and adding up fees which may not be paid?  Am I okay in canceling monitoring services?
    Should I cancel by citing either a) past due status, or b) bankruptcy filing?  Should I send written notice with a deadline to make payment, or should I just cancel with 30 day notice without opportunity to 'catch up'?
    When a subscriber files a bankruptcy petition under chapter 11 a new legal entity is created called the Debtor in Possession, DIP.  Unless an operating trustee is appointed the entity's principals continue to operate the company and much of the operation remains the same.  All outstanding contracts which remain to be performed, called executory contracts, must be reaffirmed by the DIP within 60 days of filing the petition, unless extended by the Court, or are deemed rejected.  Often blanket orders or entered extending the time to review and decide whether to reaffirm executory contracts.  But, it's not likely the alarm contract is on the radar and it may be overlooked.  That means it will be deemed rejected and that means you don't have a contract to enforce.  
    I am making this more complicated than it needs to be.  Here is what you should do, and what you should not do,  when you get notice of a chapter 11 filing.
    First what you can't do.  You can't demand payment for any money due prior to the date of filing.  If you have outstanding debt owed to you then any payment you received within 90 days of the filing could be recovered later as a preference.  That won't apply if you are continuing to provide services, at least to the value of the services.  You can't demand payment for pre petition money owed and threaten to terminate services if not paid. 
    You can insist that the DIP either affirm the outstanding executory contract or enter into a new contract.  Any money that comes due post petition filing will be a chapter 11 administrative expense, but that doesn't mean you'll get paid.  Many chapter 11 DIPs are not successful in their reorganization and end up being converted to chapter 7; the are liquidated.  Since chapter 7 administrative expenses get paid before chapter 11 administrative expenses there is a good chance you won't get paid for outstanding money owed to you for post petition and almost certainly, pre petition.  
    In your case you are in renewal.  I would demand that the chapter 11 DIP sign a new contract and I would insist on payment well in advance.  Demand that the DIP submit the contract to the Court for approval and make sure you terminate the service the moment you aren't paid as agreed.  The Standard Form Agreements all permit termination when the subscriber defaults, without notice.  If you decide to give notice then make sure its unequivocable, no chance to cure and with a date and time certain for cessation of services.  For fire alarm systems be sure to notify the AHJ that services are terminating.
    There are going to be situations where your alarm services are both substantial and necessary for the DIP to continue to operate, such as a hospital or other facility that requires fire alarm services.  In those situations it may be prudent to engage counsel to assist with your negotiations and ensuring payment.  You may want to obtain a Court order ensuring your super priority if you can get it.
    In the run of the mill situations a chapter 11 filing will increase your risk of getting paid and if that causes you additional stress then tell the account to find another company, file your proof of claim and move on.
    What is the reasoning behind different contracts for residential in the two states, but not commercial. 
    Most states have specific laws that apply to consumer contracts in that state, so we customize our Standard Forms to accommodate those state by state requirements.  Some states don't permit waiving counterclaims, or jury trials, or permit indemnity or automatic renewal.  Just about ever state has it's own statutory form for the 3 day notice of cancellation.  
    For companies confining their business operation to a single or few adjoining states the separate state forms should be used.  For companies engaged in nationwide operations, we do have our nationwide form.  This form is most suitable for on line execution because it's much longer than a single state form.  The single state form can be obtained at www.alarmcontracts.com.  The nationwide form can be obtained by calling our Contract Administrator Eileen Wagda at 516 747 6700 x 312