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Chapter 11 Strategies to Help Medium-Sized Businesses Survive
A medium-sized business can encounter financial problems even when it is not truly insolvent. Despite having loyal customers, valuable assets and strong long-term prospects, a company may struggle because of rising operating costs, expensive leases and contracts and aggressive collection efforts by certain creditors. When these financial problems start to interfere with a company’s growth […]
How Chapter 11 Gives Businesses Leverage in Negotiation
It is rarely easy for a struggling business to negotiate with its creditors. After all, creditors care about getting paid, not what a business has to do to make that happen. As a result, creditors may demand immediate payment on past-due bills, threaten lawsuits over unpaid accounts or pursue collection actions. Chapter 11 changes that […]
The Value of Nonconsensual Plan Confirmation in Subchapter V
A Subchapter V proceeding is a streamlined form of small-business bankruptcy that helps owners quickly reorganize their debts and keep the business operating. One of the most significant advantages of Subchapter V is that a small business does not necessarily need creditor approval for a reorganization plan to be confirmed by the court. Traditional Chapter […]
Selling Assets of a Distressed Business Through Section 363
During a Chapter 11 proceeding, a debtor that continues to operate the business and control company assets may seek court approval for a Section 363 sale. This court-supervised auction process allows the debtor-in-possession (DIP) to sell selected assets quickly, free and clear of liens, claims and other encumbrances — something that is often difficult or […]
What Chapter 11 Filers Should Know About Personal Liability
Unless a business is established as a sole proprietorship or general partnership, owners typically can avoid personal liability for most business debts. If a corporation or limited liability company (LLC) files a Chapter 11 bankruptcy, owners generally do not put their personal assets at risk. There are exceptions, however. Personal liability may still attach in […]
Early Warning Signs of Business Insolvency, and How to Respond
Businesses rarely fail because of a single catastrophic event. Insolvency is almost always signaled by accumulated red flags, which can appear months before a crisis hits. The challenge is that owners are often too busy running the company to notice the patterns forming beneath the surface. The following are common signs that a business may […]
What to Learn From Recent Retail Chapter 11 Filings
Many distressed retailers turn to Chapter 11 to restructure and survive. Recent filings by retailers illustrate how companies can cut debt, streamline operations and concentrate on their most profitable business lines, thereby re-emerging as leaner, more competitive businesses. In the first quarter of 2026, business bankruptcies were at their second-highest level since 2010. Small businesses […]
Using Chapter 11 to Restructure Tax Debt
For many business owners, tax debt is not the result of poor planning but rather of income shortfalls, unexpected expenses, sudden economic downturns or other financial pressures that make it difficult to keep up. Chapter 11 can offer a path to tax relief, allowing a business to reorganize certain tax debts while continuing to operate […]
How Restaurants Can Use Chapter 11 to Renegotiate Leases
Restaurants are particularly prone to earnings downturns, which together with high rent and other obligations can push them to the brink. Chapter 11 is designed to help businesses continue operating while restructuring their debt and expenses. One of its most valuable features is giving owners a remedy for a lease or other rental agreement that […]
Strategic Use of a Single Asset Real Estate (SARE) Chapter 11
A Single Asset Real Estate (SARE) Chapter 11 is a remedy by which certain distressed property owners can stop foreclosure and pursue refinancing or other solutions. A debtor is generally classified as a SARE when substantially all of its income is generated by a single real estate asset and it does not conduct any other […]
