Early signs of customer financial distress can quickly snowball into serious cash-flow problems, especially for third-parties who depend on steady receivables.

Involuntary bankruptcy petitions can help creditors recover debts, but only if filed strategically. Learn how to meet legal requirements and avoid risks.

What benefits creditors more? When considering federal court receivership vs. bankruptcy, bankruptcy is often more predictable, but costly.

Filing an involuntary bankruptcy petition is a powerful collection tool, but an involuntary petition can also come with fees and liability.

The Sixth Circuit would quote Ohio case law to explain that “A contract of novation is created where a previous valid obligation is extinguished by a new valid contract, with the consent of all the parties, and based on valid consideration.” In a sense, a novation establishes that the prior contract is fully performed by the novated contract.

An Unfortunate Case for Unsecured Creditors A settlement agreement in the Mega RV Corp. bankruptcy highlighted the interplay between an overzealous lender and a repentant business owner who came together to cooperate and provide a windfall recovery to unsecured creditors. Ultimately, through the machinations of the bankruptcy case, the settlement proved to be insufficient to provide the windfall that was optimistically expected only a short time earlier. Who is Mega RV? Mega RV was founded in 2000 by Mike McMahon as McMahon’s RV. They were in the business of selling […]