Author Archives: Michael J. Berger
What Businesses Need to Know About Involuntary Bankruptcy
Involuntary bankruptcy occurs when creditors file a petition in court to force a debtor into proceedings. Such cases can arise in the context of disputes with creditors, acute liquidity crises or suspicions that company insiders are moving or hiding assets to evade legitimate debts. Businesses should take the risk of an involuntary bankruptcy seriously, as […]
Why Subchapter V Eligibility Has Become a Hot Bankruptcy Issue
Subchapter V, enacted in 2019, was designed to streamline the Chapter 11 process for small businesses with overwhelming debt loads. Offering a faster, less expensive reorganization, this remedy has surged in usage. But as filings have increased, so have disputes over which businesses can tap into Subchapter V’s benefits. Creditors are pushing back with eligibility […]
Even Without a Recession, Financial Distress Among Businesses Is Rising
Although the U.S. economy closed out 2025 without a formal recession, a growing number of businesses have been finding themselves in financial distress. For many companies, the pressure has been building quietly for years and the cumulative effect is now palpable. Companies are increasingly filing for Chapter 11 bankruptcy relief not because of an economy-wide […]
Negotiating With Creditors During a Chapter 11 Restructuring
One of the most critical aspects of a Chapter 11 can be negotiating with creditors on key aspects of the restructuring plan. The goal is to forge agreements that allow the business to stabilize and recover while ensuring creditors recover as much as possible relative to the alternative: liquidation. Businesses that approach creditor negotiations with […]
How to Protect Personal Assets During a Small Business Bankruptcy
Despite their best efforts, small business owners may be pushed into insolvency by economic downturns, unexpected events. They can seek relief under bankruptcy laws, including Subchapter V of Chapter 11, which provides a streamlined process for seeking debt protection and restructuring. The owner of a closely held business facing the prospect of bankruptcy may worry […]
What Is the Typical Timeframe of a Chapter 11 Bankruptcy?
Chapter 11 bankruptcy is a legal process designed to help financially distressed businesses reorganize their debts and regain solvency. Chapter 11 gives the business the opportunity to restructure its finances, renegotiate contracts and develop a plan for repaying creditors over time, rather than having to liquidate assets and cease operations. The Chapter 11 process is […]
Protecting, Monetizing and Leveraging IP Assets During Chapter 11
When a company enters Chapter 11 bankruptcy, it faces a critical juncture, one in which the primary goal is to obtain debt relief. The remedy also offers a chance to reorganize operations, improve its balance sheet and emerge as a stronger entity. Among a business’s greatest assets is its intellectual property (IP). Whether consisting of […]
How the Automatic Stay Works in Chapter 11 Cases
The automatic stay is a powerful tool for a business seeking Chapter 11 protection. It takes effect the moment the petition is filed and functions as a court-ordered injunction that bars most creditors from continuing or starting collection activities against the debtor or the debtor’s assets. That means prepetition lawsuits, garnishments, foreclosures, repossessions, repossession threats, […]
Prepackaged vs. Traditional Chapter 11 — Which Is Right for You?
For distressed companies seeking a path to financial stability, Chapter 11 bankruptcy is a powerful tool, offering the possibility of reorganizing debts while continuing operations. However, not all Chapter 11 filings are created equal. Business owners considering this relief must choose between two primary options: traditional Chapter 11 and prepackaged Chapter 11. Traditional Chapter 11 […]
How Chapter 11 Can Help Save a Failing Franchise
Franchise businesses, especially in industries like food service, hospitality and retail, often face heightened financial pressures. These can be due to high overhead — such as lease payments, royalty and advertising fees, payroll and inventory — combined with evolving consumer tastes, disruptive economic trends and internet business, which has shifted how customers interact with brands. […]
