Tag Archives: fraudulent
What Chapter 11 Filers Should Know About Personal Liability
Unless a business is established as a sole proprietorship or general partnership, owners typically can avoid personal liability for most business debts. If a corporation or limited liability company (LLC) files a Chapter 11 bankruptcy, owners generally do not put their personal assets at risk. There are exceptions, however. Personal liability may still attach in […]
How Clawbacks Can Affect the Progress of a Chapter 11
Clawbacks are mechanisms that allow a Chapter 11 bankruptcy trustee or debtor-in-possession (DIP) to recover certain payments or asset transfers made by the debtor prior to or shortly after filing for bankruptcy. These provisions aim to ensure equitable treatment of creditors and prevent debtors from unfairly preferring certain creditors or transferring assets to hinder creditor […]
