Category Archives: Chapter 11 Bankruptcy
When Can the Bankruptcy Court Order a Revocation of Discharge Under Chapter 11?
When a company files for bankruptcy under Chapter 11, the primary goal is to achieve a final, legally-binding resolution that allows the company to move forward with a reorganized debt load that it can effectively manage while still focusing on growing its operations and maximizing its long-term profitability. While this is the ultimate outcome… Read More »
Understanding the Terminology In Chapter 11 Bankruptcy Cases
Effectively pursuing Chapter 11 and maximizing the benefits of the bankruptcy process requires informed and strategic decision-making. The bankruptcy process is exceedingly complex, and while financially distressed companies have multiple options available under Chapter 11, simply identifying and understanding these options can prove challenging for those who are unfamiliar with the basic terminology involved…. Read More »
Claims for Non-Dischargeability in Business Bankruptcy Cases Under Section 727
When preparing to file for bankruptcy under Chapter 7 or 11, business owners must carefully assess their risk of facing claims for non-dischargeability. This includes not only claims for non-dischargeability of individual debts but also claims for non-dischargeability in the entirety. Both creditors and trustees can object to discharge during the bankruptcy process. While… Read More »
Defenses to Discharge in Business Bankruptcy Cases Under Section 523
In a business bankruptcy, the discharge of the business’s debts relieves the business of its ongoing payment obligations. As the U.S. Courts explain, following a discharge in bankruptcy: “[T]he debtor is no longer legally required to pay any debts that are discharged. The discharge is a permanent order prohibiting the creditors of the debtor… Read More »
Chapter 11 Bankruptcy Filing Requirements: An Overview
When seeking bankruptcy protection under Chapter 11, businesses must submit multiple pleadings, forms and supporting documents to the U.S. Bankruptcy Court. As filing deficiencies can delay—or potentially even compromise—the bankruptcy process, businesses must work closely with their counsel to ensure that they meet all applicable requirements. Generally, businesses filing for bankruptcy protection under Chapter… Read More »
7 Ways a Lawyer Can Help with the Chapter 11 Bankruptcy Process
Filing for bankruptcy under Chapter 11 is a viable option for many businesses that are struggling financially. But, while Chapter 11 is designed to help businesses get back on solid financial ground, navigating the bankruptcy process can prove challenging. As a result, businesses seeking to reorganize their debts under Chapter 11 need experienced bankruptcy… Read More »
10 Common Roadblocks in Chapter 11 Bankruptcy Cases
While most Chapter 11 bankruptcy filings go smoothly, it is possible for a variety of issues to arise along the way. Overcoming these issues costs time and money, and thus it is generally best to avoid them if possible. Hiring experienced business bankruptcy counsel can mitigate the risk of issues getting in the way… Read More »
10 Common Misconceptions about Filing for Business Bankruptcy Under Chapter 11
There are lots of misconceptions about bankruptcy. While some people assume that businesses that file are on the brink of failure, others assume that filing for bankruptcy is simply a way for large companies to get away with not paying their debts. But, the reality is that, for most businesses, filing for bankruptcy is… Read More »
Answers to Frequently Asked Questions (FAQs) about Chapter 11 Bankruptcy
Filing for Chapter 11 bankruptcy is a viable solution for many businesses that are struggling to pay their debts as they come due. Unlike filing for Chapter 7 bankruptcy, which typically results in liquidation, filing under Chapter 11 allows businesses to continue operating under a “reorganized” debt structure. If you are considering a Chapter… Read More »
Should You File for a “Small Business” Bankruptcy Under Chapter 11?
Enacted in 2019, the federal Small Business Reorganization Act (SMRA) established special procedures for small businesses seeking to reorganize their debts under Chapter 11 of the U.S. Bankruptcy Code. As explained in Business Law Today shortly after the SBRA’s enactment, “the act lowers costs and streamlines the plan confirmation process to better enable small… Read More »