Tag Archives: petition
What Businesses Need to Know About Involuntary Bankruptcy
Involuntary bankruptcy occurs when creditors file a petition in court to force a debtor into proceedings. Such cases can arise in the context of disputes with creditors, acute liquidity crises or suspicions that company insiders are moving or hiding assets to evade legitimate debts. Businesses should take the risk of an involuntary bankruptcy seriously, as […]
How the Automatic Stay Works in Chapter 11 Cases
The automatic stay is a powerful tool for a business seeking Chapter 11 protection. It takes effect the moment the petition is filed and functions as a court-ordered injunction that bars most creditors from continuing or starting collection activities against the debtor or the debtor’s assets. That means prepetition lawsuits, garnishments, foreclosures, repossessions, repossession threats, […]
