Category Archives: Chapter 11 Bankruptcy
When Is It Time to Consider a Business Bankruptcy?
While filing for bankruptcy under Chapter 11 can provide much-needed financial relief to struggling businesses, a bankruptcy filing isn’t the right choice in all scenarios. Among many other factors, timing is a key consideration, and business owners and executives must ensure that when they decide to pursue bankruptcy (if they decide to pursue bankruptcy),… Read More »
When Should Businesses Consider Bankruptcy as an Alternative to Litigation (or Arbitration)?
Media outlets will occasionally pick up stories of companies filing for bankruptcy in order to avoid litigation. Usually, these companies are portrayed as bad actors that are taking advantage of the bankruptcy process to avoid liability for their misdeeds. But, when the U.S. Bankruptcy Code allows a company to file, there is nothing wrong… Read More »
A Closer Look at Some of the Benefits (and Limitations) of a Chapter 11 Business Bankruptcy
Filing for bankruptcy under Chapter 11 allows companies to reorganize their debts so that they can sustainably manage their financial obligations on an ongoing basis. For struggling companies, filing under Chapter 11 can save them from going under, and it can also help ensure that their financial strain does not have a negative impact… Read More »
Business Bankruptcy: Options and Alternatives for Companies in Financial Distress
For companies in financial distress, pursuing a business bankruptcy can provide a favorable path forward. Liquidation and reorganization bankruptcies both offer a path toward a fresh start—whether this involves shutting down and starting over or remaining in business with a manageable debt load. But, when considering a business bankruptcy, it is important that business… Read More »
Proving a Fraudulent Conveyance in a Business Bankruptcy Case
When a business files for bankruptcy, its creditors have the right to protect their interests by seeking payment through the bankruptcy estate. Under the U.S. Bankruptcy Code, businesses that file for bankruptcy must fully disclose their assets that properly belong in the estate, and they may not transfer assets prior to (or during) the… Read More »
Subchapter 5 Bankruptcy: Understanding the Benefits for Small Businesses
The federal Small Business Reorganization Act (SMRA) established streamlined procedures for eligible small businesses seeking protection under Chapter 11 of the U.S. Bankruptcy Code. These procedures exist under the new Subchapter 5, and filing for bankruptcy under Subchapter 5 offers several benefits to small businesses that qualify. Here, a Miami Chapter 11 bankruptcy lawyer… Read More »
When Can Creditors Assert Preference Claims in Business Bankruptcy Cases?
During business bankruptcy proceedings, it is important that creditors protect their rights by all means available. While this will involve asserting defenses to discharge in some cases, these defenses won’t always be available. When creditors cannot protect their claims entirely, they must focus their efforts on ensuring that they are able to collect as… Read More »
Bringing a Claim for Non-Dischargeability in a Business Bankruptcy
Protecting a creditor’s right to payment during a business bankruptcy often involves filing a claim for non-dischargeability. Claims for dischargeability can focus on protecting an individual claim, or, in some cases, they can focus on preventing the business debtor’s discharge entirely. In both scenarios, creditors bringing claims for non-dischargeability must follow a specific set… Read More »
Defending Against the Discharge of Claims in Bankruptcy
The bankruptcy process can present significant risks for creditors. Even in Chapter 11 proceedings in which corporate debtors reorganize their debts, creditors can still end up collecting just a fraction of the funds they are rightfully owed. As a result, when a debtor files for bankruptcy, its creditors must work with their counsel to… Read More »
Are There Any Drawbacks to Filing a Business Bankruptcy Under Chapter 11?
While reorganizing a business’ debts under Chapter 11 affords significant benefits in the right circumstances, company executives who are considering business bankruptcy filings need to assess the drawbacks as well. Although the benefits of filing will often outweigh the drawbacks, this is not always the case, and executives need to make the right decisions… Read More »