Category Archives: Chapter 11 Bankruptcy
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 »
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 »