Tag Archives: debtor
What to Know About Assuming a Lease or Executory Contract During Chapter 11
Existing leases or executory contracts present special issues when one of the parties files for Chapter 11 bankruptcy. Other parties to the lease or contract may wish to end it, fearing the debtor may not be able to fulfill the terms. Some leases and contracts include a clause that automatically terminates the agreement upon a […]
Can a Chapter 11 Plan Release a Third Party from Liability to Creditors?
In a Chapter 11 bankruptcy, the debtor (usually a business organization) reorganizes its existing debts and repays obligations over a period of years in accordance with a court approved plan. Longstanding bankruptcy law permits the courts to discharge certain obligations as to the debtor. Some Chapter 11 debtors propose reorganization plans that release third parties […]
Your Options if You Can’t Make Your Chapter 13 Payments
The core of a Chapter 13 bankruptcy is the debtor’s ability to pay creditors back a portion of what is owed them. The debtor promises to make monthly payments for a specified period of time, which are determined based on the debtor’s available income sources. If all goes well, the rest of the outstanding debt […]
When Can a Court Convert Your Chapter 11 Reorganization to a Chapter 7?
Businesses under financial duress can choose from two alternative courses in bankruptcy. If they believe they can reorganize and return to profitability, they can opt for Chapter 11. If not, then the path is Chapter 7, by which the business’s assets are liquidated and distributed to creditors and the company ceases to exist. A business […]
