Preparing Your Company for Chapter 11 Bankruptcy

By: Jamie L. Harris Putting your company in Chapter 11 bankruptcy is far more complicated that just signing some paperwork.  First, you need to evaluate if all your financials are accurate and up to date. You will want to get all tax returns timely filed and gather all your insurance

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Interest Rates and Tax Claims

By: Laura Day DelCotto I learn something new every day, so it keeps this life fun. Somehow, I don’t remember ever specifically focusing on 11 USC §511 in all these years of confirming plans.   With interest rates moving so often this year (and in the wrong direction from borrowers’ perspective),

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Chapter 11 May Help Nassar Victims

By: Laura Day DelCotto   The WSJ headline about the recent USA Gymnastics’ filing is spot on. At first blush, when anyone with multiple lawsuits files bankruptcy, there seems to be a rush to judgment that the debtor is seeking to evade and avoid litigants.   The filing is viewed with

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Chapter 11 Bankruptcy: An Option for Individuals

By: Laura Day DelCotto The vast majority of Chapter 11 bankruptcy filings are by businesses:  LLCs, closely held corporations, and large public company filings.  We read about them almost daily in the news.  This is how we have come to mostly think about Chapter 11 in the US: a large

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Legal Claims as Assets in Chapter 11

By: Dean Langdon It’s not unusual for a company in financial distress to be involved in some sort of litigation, with claims being asserted back and forth between one or more parties. One of the benefits of filing bankruptcy is the automatic stay, which stops prosecution of most legal actions

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How Long Does a Chapter 11 Take?

“How long does a chapter 11 take?” In Kentucky, a typical chapter 11 bankruptcy lasts 6 months – 1 year.  However, chapter 11’s vary with each situation, factors include: number of creditors research of potential litigation claims cash flow/operating issues, and if primary lenders agree on a plan or sale.  

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Automatic stay, extend, non-debtor, non-bankrupt parties

Extending Automatic Stay to Non-Debtors

A bankruptcy lawyer’s overview for automatic stay for non-bankrupt parties   Bankruptcy courts have the authority to extend the automatic stay to non-bankrupt parties, under limited circumstances. Bankr.Code, 11 U.S.C.A. §§ 105(a), 362(a).  Section 105 (a) of the Bankruptcy Code states as follows:  “The court may issue any order, process,

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hospital bankruptcy, rural hospitals, chapter 11

Rural KY Hospital, New Horizons, files bankruptcy

New Horizons (Owen County Hospital): Another Rural Kentucky Hospital in Trouble By Laura Day DelCotto Another of Kentucky’s rural hospitals just filed bankruptcy, stating that it has been exploring sale options for a year, and that it has recently decided that a sale through the bankruptcy court process is its

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Automatic Stay: What is it?

The foundational goal of the bankruptcy system is to provide deserving debtors with relief from their debts so that they can obtain a “fresh start.” This process starts at the moment that a debtor files for bankruptcy case through the “automatic stay.” The automatic stay is a portion of the

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