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Insolvency Decision Tree (beta)

This page is a work-in-progress. More content will be coming soon.

Distressed
Business Secured Creditors Employees Unsecured Creditors Vendors Customers
  • Cash = King
  • Consider Strategies & Alternatives
  • Slow Pay / No Pay Vendors
  • Credit Restrictions
Alternatives For the Debtor Alternatives Against the Debtor

Chapter 7
Liquidation
Chapter 11
ABC
Friendly Article 9/
Surrender &
Satisfaction
Out of Court
Restructuring
Involuntary Chapter 11
Federal Receivership
State Court Receivership
Article 9 Foreclosure

Chapter 11
Debtor US Trustee Bankruptcy Court Employees Secured Creditors Creditors' Committee Trade Creditors Customers Executory Contract /
Lease Counterparties

Prepack
Prearranged / Free-Fall
Traditional Chapter 11
Subchapter V
SARE
1st Days of Case
  • 1st Day Hearing
  • 1st Day Motions
  • Automatic Stay
  • DIP Financing
Business As Usual
  • Ordinary Course of Business
  • Contract & Lease Assumption / Rejection
  • Reporting Obligations
  • Schedules/SOFAs
Orderly Liquidation
Going Concern Sale
Classic Reorganization

Case Dismissal / Conversion
Plan Confirmation
  • Plan Formation
  • Disclosure Statement
  • Exclusivity Periods
  • Solicitation
  • Confirmation Requirements

Exit & Post-Confirmation
  • Exit Chapter 11
  • Implement Restructuring
  • Claims Resolution Process
  • Avoidance Action / Asset Recoveries