Remove Creditors Remove Debtor Remove Unsecured Creditor
article thumbnail

As Chapter 11 Bankruptcy Filings Surge, Here’s What Creditors Need to Know to Protect and Enforce Their Rights

Fraser

Creditors of a bankrupt company must be aware of the various deadlines and procedures that govern the chapter 11 process in order to protect and enforce their rights. For creditors to maximize their recoveries, they must stay informed and take action during a bankruptcy proceeding. The Petition Date. Proof-of-Claim Bar Date.

article thumbnail

Court Dismisses Bankruptcy Case to Enable Debtor to Seek a Paycheck Protection Loan

PBWT

It is well known in the restructuring world that a debtor in bankruptcy can’t get a PPP loan. But what if you’re a debtor and decide a PPP loan could save your business? The issue arose recently where a chapter 11 debtor already had DIP financing in place. The debtor is an event design company.

Debtor 65
Insiders

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Another Bankruptcy Court Weighs in on Postpetition Interest

PBWT

Because it was solvent at confirmation, the debtor proposed to pay secured creditors in full, with interest at the contract rate, and general unsecured creditors in full, with postpetition interest at the “legal rate,” or a rate determined by the Court that leaves the creditors unimpaired. [1]

article thumbnail

Florida Bankruptcy Court Sanctions Debt Buyer for Seeking to Collect Debt that Consumer Failed to Schedule in Bankruptcy Case

Troutman Sanders

As background, in 2002, the debtor and her then-spouse jointly filed a “no asset” Chapter 7 bankruptcy petition. She listed 45 unsecured creditors in her schedules of assets and liabilities, including the $7,400 credit card debt at issue. The court found this argument contrary to the plain text of the Bankruptcy Code.

article thumbnail

Crypto Exchange Platforms Grapple with Consequence of Filing Bankruptcy

PBWT

Since companies facing bankruptcy usually try to keep an anticipated filing quiet in order to prevent creditors from taking adverse actions, customers may unexpectedly lose control over their crypto assets. Furthermore, a debtor may use or sell its property either in the ordinary course of business or with court authorization.

article thumbnail

Recent Decision on Derivative Standing by a Creditors’ Committee to Challenge a Lender’s Liens

PBWT

In many chapter 11 cases, creditors’ committees can play a vital role in maximizing the recoveries of unsecured creditors. But the powers of creditors’ committees are circumscribed by both the Bankruptcy Code and case law. The debtor operated 28 franchise restaurants primarily in the Sun Belt region.

article thumbnail

Your Commercial Debtor Just Went Bankrupt — Can You Still Get The Money You’re Owed?

Debt RR

However, if the debtor owes a significant amount, you may want to consider pursuing the debt in bankruptcy court. Even in a best-case scenario — as a secured creditor — you could be waiting up to six years to receive payment. Even in a best-case scenario — as a secured creditor — you could be waiting up to six years to receive payment.

Debtor 49