What you need to know as a secured lender to a borrower who goes into bankruptcy you should know already, well in advance. If your borrower’s bankruptcy filing has taken you by surprise, please refer to my next article in this series, in which I will discuss the tactics and strategies in the contested case […]
Mention involuntary bankruptcy to many in the credit industry and you often get a sharp response: no way. Decisions that have awarded punitive damages to debtors have received broad attention. Trying to collect on a bad loan is tough enough. Why compound the struggle by giving the debtor the claim that an involuntary filing was […]
Editors’ Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to firstname.lastname@example.org and we will try to answer it.
Bankruptcy claims do more than simply determine the amount of money a creditor is owed or can receive as a distribution. Claims also can generate clout, and clout enables a creditor to sit on a creditor committee, have more leverage in negotiations, and claim a higher-priority right to payment – that is, to skip ahead […]
Are you confused where to file bankruptcy? Why file a bankruptcy case here instead of there? An entity, and moreso a group of entities, may be legally permitted to file for bankruptcy in any one of a number of judicial districts – also referred to as venues. A prospective debtor should carefully consider where to […]
What should interested parties in a bankruptcy case monitor when the Pension Benefit Guaranty Corporation (PBGC) files a claim in the case as an unsecured creditor? When a company that has filed a petition in bankruptcy sponsors the type of pension plan insured by the PBGC, it is more likely than not that the pension […]
When a customer files for bankruptcy, vendors with claims against the debtor that arose before the commencement of the case (the “Petition Date”) can be exposed to considerable losses. To protect themselves in the days and weeks before and after the bankruptcy filing, creditors must assess how to maximize their distribution on claims and prepare […]