Tag Archives: debtors
How Nonconsensual Third-Party Releases Can Be Useful in Chapter 11 Bankruptcy Cases
Nonconsensual third-party releases are provisions in Chapter 11 bankruptcy plans that release non-debtor parties from liability to creditors without the consent of all potential claim holders. These releases can be a useful tool for debtors in a number of situations. The common purpose of nonconsensual third-party releases is to protect directors and officers from liability […]
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 […]
Keys to a Successful Chapter 13 Reorganization
In a Chapter 13 bankruptcy — also known as a wage earner’s plan — a portion of the debtor’s outstanding unsecured debts are paid over a period of three to five years, with the remainder then being discharged. Chapter 13 is often an attractive option for debtors with steady incomes because it allows them to […]
