If you own your own business, and that business is in trouble, or even just not doing as well as it once was, among the tools you should consider using is a business bankruptcy. If you want to continue to operate your business, but restructure its debt, your options are Chapter 11, which is a [...]
Chapter 11 Bankruptcy
Top 15 Lies About Bankruptcy Lie #1: Congress Ended Bankruptcy in 2005 Truth-o-Meter: Even though the 2005 amendments to the Bankruptcy Code known as “BAPCPA” were passed a long time ago, we are still hearing a lot of misinformation about this. Some of the worst falsehoods that bill collectors still are saying are: The [...]
The 2005 amendments to the Bankruptcy Code modified the landscape for a key defense to bankruptcy preference actions. Preference actions are when a trustee or debtor in possession sue a creditor for the return of payments made in the 90 days before a bankruptcy. The concept is that creditors that receive more than similarly situated [...]
In bankruptcy there is a hierarchy in the right to get paid. Secured creditors come before unsecured creditors who, in turn, come before stockholders. Senior creditors get paid in full before their juniors get anything. In a Chapter 11 bankruptcy scenario, there is usually a tier of creditors that is only partially “in the money.” [...]
The headline caught my eye: “Is Bankruptcy ‘Business as Usual’ for Airlines.’ ” On NPR, no less. Reporting on the Chapter 11 filed by American Airlines, the article goes on to note: You might say it’s almost business as usual for the airline industry. United, Northwest and Delta have all taxied down the Chapter 11 [...]
Credit bidding is a right that secured creditors have in bankruptcy sales allowing them to control the sale of their collateral. When collateral that secures a lien is proposed to be sold at a bankruptcy auction, a secured creditor is allowed to bid the amount of its debt as a credit bid, i.e. not a [...]
