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Involuntary Bankruptcy
90 Second Lesson: Receivership vs Bankruptcy
The Benefits and Downsides of the Receivership Process [Editors’ Note: this is part of our irregular series in which we answer readers’ questions. If you have a question, submit it to [email protected] and we will try to answer it.] QUESTION: Do secured creditors benefit more from a debtor’s bankruptcy or federal court receivership? ANSWER: […]
90 Second Lesson: I’ve Been Asked to Sign an Involuntary Bankruptcy Petition. Should I?
The Advantages and Disadvantages of an Involuntary Petition QUESTION: The credit manager of an Akron-based company asks: “One of our commercial accounts is pretty far behind in paying on our invoices. Another vendor approached me and asked me to join in signing an involuntary bankruptcy petition. Is there any legal risk in doing this?” […]
Getting Over the Scariness of Filing an Involuntary Bankruptcy Petition
The Notorious Case of the Involuntary Bankruptcy Mention involuntary bankruptcy to many in the credit industry and you often get a sharp response: no way. Decisions that 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 […]
Mega RV: Unsecured Creditors Fall Short in Bankruptcy Settlement
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 […]
Ponzi Scheme Lender May Be On The Hook, After All!
The Skinny The Sixth Circuit recently revived a trustee’s $17 million avoidance and claw-back suit against a lender, finding that the lender’s existing security interests could have been extinguished via novation. Impact: secured lenders entering into amended and restated loan documents should adopt definitive and irrefutable language demonstrating that the parties do NOT intend for the new […]