Tag Archives: debtor
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 […]
How First-Day Motions Can Be Integral to a Successful Chapter 11
First-day motions are expedited requests filed at the outset of a Chapter 11 case to address immediate operational needs. Their purpose is to stabilize the business, maintain continuity and preserve the value of the estate during the critical early stages of the bankruptcy process. First-day motions — so named because they are typically heard within […]
The Role of the Creditors’ Committee in Chapter 11 Cases
A creditors’ committee is a central feature of a Chapter 11 bankruptcy case. It is a group of unsecured creditors charged with protecting the interests of all unsecured creditors, whose claims may be reduced or discharged under the reorganization plan. The committee serves as a safeguard, providing oversight of a debtor in possession and helping […]
Using Exemptions in an Individual Chapter 11 Bankruptcy
Bankruptcy exemptions are legal protections that allow debtors to keep certain property out of the reach of creditors when seeking bankruptcy relief. While exemptions are most frequently associated with Chapter 7 (liquidation) and Chapter 13 (wage earner’s reorganization) cases, they are also relevant in Chapter 11 bankruptcies when the debtor is an individual, rather than […]
Defenses to a Motion for Relief from the Chapter 11 Automatic Stay
In a Chapter 11, the automatic stay is a critical protection that halts all collection activities by creditors against the debtor, such as foreclosures, repossessions or lawsuits. It takes effect immediately upon the filing of the bankruptcy petition and remains in force until the case is closed or dismissed or until a discharge is granted […]
When Can a Chapter 11 Case Be Converted or Dismissed for Cause?
Chapter 11 offers a debtor the opportunity to reorganize their business and attempt to become profitable again. However, a Chapter 11 plan must be in the creditors’ best interests. There are instances where a party in interest, such as creditors or the U.S. trustee, may file a motion to convert the case to Chapter 7 […]
When Might a Court Remove a Subchapter V Debtor-in-Possession?
In a small business reorganization under Subchapter V of the U.S. Bankruptcy Code, the business owner is typically allowed to continue operating as a debtor-in-possession (DIP). This arrangement permits the owner to maintain control over the business under the auspices of the court-appointed trustee in order to facilitate the transition to financial solvency. However, there […]
How to Combat Adversary Proceedings Objecting to Debt Discharge
An adversary proceeding is a case within a bankruptcy case. It is a lawsuit filed to resolve disputes during the bankruptcy process. One common scenario is when a creditor objects to the discharge of certain debts, asserting that those debts are not eligible for discharge under the Bankruptcy Code. Such proceedings are initiated by filing […]
When Might a Bankruptcy Court Appoint a Chapter 11 Trustee?
In most Chapter 11 bankruptcy cases, the company or individual filing for protection acts as a debtor-in-possession (DIP). The debtor retains control of the business and continues its daily operations under the oversight of the bankruptcy court. The debtor-in-possession has the fiduciary responsibility to manage the business in a way that maximizes the value of […]
“First Day Motions” in Chapter 11 Bankruptcy Cases
At the onset of a Chapter 11 bankruptcy case, the debtor’s attorney will make certain motions to the court to address immediate concerns, to allow the debtor to maintain business continuity and to preserve the value of the debtor’s property for creditors. Here is an overview of the most common “first day motions” and their […]
