Client sold goods on credit and buyer. Buyer is filing chp 7. Buyer is selling my client's goods at fire sale prices and not paying my client. What can my client do to stop wasting my client's money???

I'm not certain about your facts, but I understand that your client is the seller of the goods. That being said, I assume there was some sort of written contract between your client and the buyer. Though you cannot go after the buyer for the money (for now), you should be able to get an injunction against the buyer. Request an emergency TRO (temporary restraining order) preventing the buyer of your client's goods from selling them until his bankruptcy matter is resolved. Or in the alternative, you could file a breach of contract claim and demand the product be returned. I'm not sure if that's acceptable under bankruptcy laws.

It may be too late. The debtor has been selling his inventory cheap and pocketing the money. I feel like calling the IRS on him. Will the Bankruptcy court audit his books for foul play?