When a customer files for bankruptcy, the vendor must act quickly and consider three key issues to protect their interests and recover their debts.

#Chapter5CausesofAction(InclFraudulentTransfersandPreferences) #Claims #GeneralUnsecuredCreditor #Priorities #SecuredClaims

https://www.dailydac.com/3-issues-for-vendors-to-consider-when-their-customer-files-for-bankruptcy/

The first day hearing is crucial for stabilizing a Chapter 11 debtor's operations and setting the tone for the case.

#CashCollateral&DIPFinancing #Chapter11Plans/Confirmation #Claims #GeneralUnsecuredCreditor #SecuredClaims

https://www.dailydac.com/the-fundamentals-of-the-chapter-11-first-day-hearing/

The manager of an insolvent LLC has distributed cash to themselves instead of paying off the company’s debts. What can you do as a creditor?

#Chapter11Plans/Confirmation #Chapter7Bankruptcy #CreditorsCommittee #GeneralUnsecuredCreditor #SecuredClaims

https://www.dailydac.com/what-can-creditors-do-when-an-insolvent-llcs-manager-distributes-cash-but-does-not-pay-creditors/

When a hostile secured lender won’t accept a debtor’s bankruptcy plan, a motion to substitute collateral could work if indubitable equivalence is met.

#BusinessDistress #CashCollateral&DIPFinancing #Chapter11Plans/Confirmation #SecuredClaims #Valuation

https://www.dailydac.com/kuneys-corner-giving-secured-creditor-substitute-collateral-in-a-chapter-11-cramdown/

A bankruptcy claim is any right to payment from the debtor. Make sure you protect your claim by filing early and amending as needed.

#BankruptcyPetition #Chapter11Plans/Confirmation #Claims #GeneralUnsecuredCreditor #SecuredClaims

https://www.dailydac.com/filing-and-amending-claims-in-a-bankruptcy-case/

When a debtor files for bankruptcy, their creditors are paid based on the absolute priority rule. As an unsecured creditor, where does your claim sit in the order of priority?

#Claims #CreditorsCommittee #GeneralUnsecuredCreditor #InvoluntaryBankruptcy #SecuredClaims

https://www.dailydac.com/who-gets-paid-first-and-second-third-etc-in-bankruptcy/

For companies operating in both the US and Canada, understanding the complexities of cross-border insolvency can be crucial for survival.

#BusinessDistress #Chapter11Plans/Confirmation #GeneralUnsecuredCreditor #Insolvency #SecuredClaims

https://www.dailydac.com/cross-border-insolvency-canadian-statutory-requirements/

You’ve just won a trial and obtained a money judgment against a corporate defendant. Now, it’s time to enforce the judgment and collect what you’re owed.

#Claims #CollectionLaw #SecuredClaims

https://www.dailydac.com/you-sued-and-won-now-what-how-to-enforce-a-judgment-in-illinois-and-turn-it-into-cash/

Acquiring assets from a bankrupt company presents unique opportunities for investors, business owners, and legal professionals. Understanding the intricacies of a Section 363 sale process, the role of a stalking horse bidder, and the dynamics of bankruptcy sales is crucial for navigating these complex transactions successfully.

#363Sale #AssetSale #BusinessDistress #Insolvency #SecuredClaims

https://www.dailydac.com/buying-assets-in-bankruptcy-opportunities-risks-and-strategies/

The automatic stay provides the debtor with breathing room to reorganize finances and prevents creditors from racing to recover assets.
#BankruptcyPetition #BusinessDistress #Chapter11Plans/Confirmation #Insolvency #SecuredClaims

https://www.dailydac.com/the-nuts-bolts-of-a-lift-stay-motion-in-a-bankruptcy-case/