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United States Trustee

90 Second Lesson: If I File a Chapter 7 Bankruptcy, Are the Assets of My Single-Member LLC Safe From the Trustee?

QUESTION: A small business owner emailed us, on behalf of a friend, to ask whether assets in a single-member LLC could be used by a Chapter 7 Trustee in the LLC member’s personal bankruptcy case to satisfy creditors’ claims against the member. ANSWER: We can imagine this question arising where the member’s business is owned […]


A Primer on the Chief Restructuring Officer (CRO)

A Brief History of the Chief Restructuring Officer The role of a Chief Restructuring Officer (“CRO”) is approximately four decades old.  While still a somewhat new role in the 1990s, CROs are now ubiquitous in the restructuring community.  Todd Zywicki, a George Mason law professor who specializes in bankruptcy law, traces the origin of the […]


Corporate Debtors’ Attorney-Client Privilege In the Hands of the Bankruptcy Trustee

Imagine if every secret and strategy that you had ever shared with your attorney were laid open for the world to see.  A trustee in a business bankruptcy case may well have the power to review, publish, and wield all of the debtor’s attorney-client privileged communications—including those communications which the debtor’s principals reasonably believed were […]


Dealing With Distress For Fun & Profit – Installment #2 – Bankruptcy Parties

A written tour of business bankruptcy and its alternatives A typical commercial litigation case involves a judge, a plaintiff, and a defendant. A typical commercial bankruptcy case also has a judge, but that’s about where the similarities stop. A typical commercial litigation case, you see, is a two-party dispute. A typical commercial bankruptcy case is anything […]


Ousting the Debtor in Possession: The Good, the Bad and the Ugly of Replacing a Debtor’s Management with a Chapter 11 Trustee

The mere act of filing a chapter 11 bankruptcy petition significantly alters the relationship between a debtor and its creditors, yet, perhaps surprisingly, the filing does not automatically trigger removal of the very management team that led (or maybe drove) the debtor into bankruptcy in the first place.  Why?  Because, in enacting the Bankruptcy Code, […]


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