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Business Bankruptcy

Lightbulbs hanging in building

Demystifying Administrative Expenses in Bankruptcy

Priority Claims in Chapter 11 Bankruptcy   Bankruptcy professionals, other business professionals, and trade vendors would be reluctant to provide services or otherwise extend credit on an unsecured basis to an insolvent entity like a bankruptcy debtor, unless their claims to payment were somehow ensured. In addressing this predicament, Congress provided that holders of unsecured […]


Silhouette of prosecuted man

How To Become a Really Bad Bankruptcy Client And Maybe Even Get Prosecuted

Follow the Rules or Become a Bad Bankruptcy Client What makes a bad bankruptcy client? A failure to follow the rules. The Bankruptcy Code requires lots of things from people who file bankruptcy. One of those things is full disclosure of all assets, liabilities, and other details regarding the debtor’s financial circumstances. A failure to […]


Geishas walk with closed kimonos

Opening the Kimono: Operational and Financial Reporting Obligations at the Outset of a Chapter 11 Case

While providing numerous advantages to the companies that choose to invoke it, Chapter 11 also imposes significant and sometimes burdensome public reporting obligations on them – hence the metaphor of the opened kimono. Because of the debtor’s reporting obligations, creditors and other parties with an interest in the Chapter 11 case (such as potential purchasers […]


Man feeding chicken

Determining the Collateral Value of a Secured Claim

Knowing Collateral Value Helps Determine the Creditor’s Rights Under a Plan The question of why we need to know the collateral value of a secured claim seems quite obvious when a secured creditor may be under-secured, that is when the value of its claim exceeds the value of the collateral securing it. In that case, […]


Abandoned building with no furniture

90 Second Lesson: Why Would a Debtor Choose to Liquidate Under Chapter 11?

Question: A reader asks, “I read about a company that filed Chapter 11 recently with a plan to sell all assets and go out of business. Why wouldn’t it file Chapter 7?” Answer: While it is true that the title of Chapter 7 is “Liquidation” and the title of Chapter 11 is “Reorganization,” these names […]


Aerial view of real estate in suburb

Claims Trading of Notes of a Debtor Might Become More Difficult After Woodbridge

When a debtor files for Chapter 11 or Chapter 7 bankruptcy, often a creditor’s only remedy is to wait for a sale or reorganization, the claims resolution process and other actions to be taken before the debtor or trustee can make distribution on the claim.


Quaint storefront of small business

Determining Value – Choosing a Business Appraiser

Don’t Leave Valuation to Chance Valuation is the determination of the worth of an entity or item. According to Erin Hollis “A valuation can be as loose as a guess, to a ‘back of the envelope’ calculation, to a formal opinion rendered by a third-party professional business valuation expert”. Having the right valuation of your […]


The Opportunistic Deal Database Provides Unique Opportunities for Investors

If you are an investor in distressed assets, you know that uncovering great deals takes a lot of work. There are times you’ve probably wished there was a way to find all the deals in one place. Well wish no more, DailyDAC has your back. DailyDAC’s Opportunistic Deal Database (“ODD”) collects information about opportunities to […]


Bankruptcy Code Revised

Some Financial Help for the Little Guy: President Trump Does Something Uncontroversial for a Change and Signs Four New Bankruptcy Bills into Law1 Download a Printable PDF of this Article President Trump signed four bipartisan bankruptcy bills into law this past Friday, effecting the most significant changes to the Bankruptcy Code since 2005. The four […]


When a Seller of Real Property Files for Bankruptcy Before Closing

What are the purchaser’s rights under an executory contract? Sven, of St. Paul, related to us this sad but musical tale, which pertains to purchasing real estate where the seller goes bankrupt before closing: You see, she and I entered into a written contract to buy a piece of land with a small house on […]


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