On behalf of Corash & Hollender, P.C. | Apr 24, 2020 | Chapter 11
Chapter 11 bankruptcy is similar to Chapter 13 in that each involves a reorganization of your debt to pay off creditors over time. However, unlike Chapter 13 bankruptcy, Chapter 11 is available to businesses as well as individuals. In that respect, it is similar to...
by phollender | Apr 18, 2020 | Bankruptcy, Business Law, Chapter 11
The New Small Business Bankruptcy Reorganization Act (Subchapter V of Chapter 11) creates great opportunities for an individual or family business to stay in business by using a special type of Chapter 11 which is less expensive, simpler and faster.New Small Business...
by phollender | Mar 19, 2020 | Bankruptcy, Business Law, Chapter 11, Chapter 13, Chapter 7
Can Bankruptcy be a solution? Are you eligible? What are the Risks? What are your personal options? What is the best Chapter for you? What is the best timing? Everyone’s situation is unique. A“cookie-cutter” bankruptcy filing without proper strategic planning may not...
On behalf of Corash & Hollender, P.C. | Mar 16, 2020 | Bankruptcy, Business Law, Chapter 11
In a Traditional Chapter 11 case there is no Trustee: a debtor is on its own dealing with creditors and the Court. In a new Small Business case, a Chapter 11 Trustee is appointed. Unlike a Chapter 7 Trustee, however, who is only interested in liquidation and is an...
On behalf of Corash & Hollender, P.C. | Mar 13, 2020 | Bankruptcy, Business Law, Chapter 11
In Traditional Chapter 11 it is necessary to prepare a detailed “Disclosure Statement” similar to a prospectus for the purchase of securities. Preparation of such document is time-consuming and expensive. Then it must go through a hearing process and the judge must...
On behalf of Corash & Hollender, P.C. | Mar 9, 2020 | Bankruptcy, Business Law, Chapter 11
In Traditional Chapter 11 the owners of the company are not allowed to remain as owners of the reorganized company unless either (i) the creditors accept the plan, or (2) the owners invest new capital of a value at least equal to the net worth of the reorganized...
On behalf of Corash & Hollender, P.C. | Mar 6, 2020 | Bankruptcy, Business Law, Chapter 11
In Traditional Chapter 11 the company must pay quarterly fees to the U.S. Trustee’s office, based upon the amount of quarterly disbursements. If disbursements are less than $15,000 per quarter the fee is only $325; but as disbursements rise, the quarterly fee...
On behalf of Corash & Hollender, P.C. | Mar 2, 2020 | Bankruptcy, Business Law, Chapter 11
In Traditional Chapter 11 the company must negotiate with a Creditors’ Committee. This creates an added layer of expense, because the attorneys for the Creditors’ Committee have to get paid by the debtor. In the new Small Business Bankruptcy Chapter 11 there is no...
On behalf of Corash & Hollender, P.C. | Feb 28, 2020 | Bankruptcy, Business Law, Chapter 11
In Traditional Chapter 11 the company must obtain at least one accepting class of creditors. This often means that the debtor must propose to pay creditors in full to obtain their consent. In the new Small Business Bankruptcy Chapter 11 this is no longer required....
On behalf of Corash & Hollender, P.C. | Feb 25, 2020 | Bankruptcy, Business Law, Chapter 11
Traditional Chapter 11 is very expensive. Because of numerous complex requirements, a Traditional Chapter 11 Reorganization can take a year or more to complete, and the attorneys’ fees for handling the case for so long, and for completing the many steps...
