Tag Archives: bankruptcy case
What the Automatic Stay Can and Cannot Do in a Chapter 11
The automatic stay is an integral aspect of a Chapter 11 bankruptcy case. Taking effect immediately upon the filing of the petition, the stay temporarily halts creditors, collection agencies and government entities from pursuing actions against the debtor or the debtor’s property. It is designed to provide a breathing spell for the debtor, during which […]
Limits on Chapter 11 Debtors’ Use of Cash Collateral
In a Chapter 11 bankruptcy, the debtor is generally allowed to remain in control of their business as a debtor-in-possession. However, this control is subject to restrictions. One of these is prohibition of use of cash collateral, which refers to cash, securities, accounts receivable, inventory and other liquid assets that may be pledged as security […]
