Tag Archives: bankruptcy code
How Leases and Executory Contracts Are Handled in Chapter 11
For a business in Chapter 11 bankruptcy, leases and executory contracts can represent valuable assets or burdensome obligations. An executory contract is one where both parties have unperformed obligations. Leases, where rent payments remain outstanding and the landlord has obligations to maintain the property, fall under this category. Here are some key points a Chapter […]
Creating a Chapter 11 Plan That Is Likely to Win Confirmation
A Chapter 11 plan is essentially a contract between a company and its creditors, governing how the company’s debt will be reorganized and managed during the Chapter 11 case. Every plan must go through court approval, which generally requires that it be workable and in the best interests of creditors. In fact, creditors who believe […]
Obtaining Credit in a Chapter 11 Bankruptcy
If your company is unable to turn a profit and has run out of lenders willing to finance it further, Chapter 11 bankruptcy could be the best way to allow the company to stay in business. A Chapter 11 also can open up other sources of credit for you. This might seem counterintuitive, because your […]
Factors Bankruptcy Courts Consider in Deciding Whether to Grant Relief from the Automatic Stay
The automatic stay is one of the most immediate and powerful benefits of filing for Chapter 7, 11 or 13 bankruptcy. While the automatic stay doesn’t erase debt, it puts a stop to creditors’ attempts to collect, giving the debtor some much-needed breathing room. Creditors can, however, petition the court for relief from the stay. […]