Chapter11bankruptcies for big companies make big news. There is theChrysler Chapter11, which is pretty much considered a success. There is the GM case, which is a bit more equivocal. And there are the perpetual airlineChapter11s. What you don't hear a lot about are small businessChapter11s. They...
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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...
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...
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...
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...
