Reasons Not To Prefer Business Bankruptcy

Preferences and the trustee’s ability to recover them have to be one of the hardest concepts to convey to bankruptcy clients. Clients gag at the thought that paying a genuine debt before a bankruptcy filing can expose the innocent recipient to suit. I was reminded of a further preference wrinkle in a corporate insolvency situation […]

Sole Proprietorships In Chapter 7 In Trustee’s Cross Hairs

Why would a Chapter 7 trustee shut down a proprietorship business with no value? That question comes up again and again from newish bankruptcy lawyers who can’t imagine that a trustee would demand the closing of the debtor’s business. After all, goes the argument, the debtor needs to make a living and the business has […]

Assessing the Ailing Business Post Pandemic

Long after the human patients recover from the coronavirus, small businesses will still be ailing. And long nights will be spent deciding whether to try to stay in business. As bankruptcy lawyers, we’re going to see people in pain trying to assess what to do next. Business owners may see the exit heading through the […]

Corporate Bankruptcy: So We Can Start Over

Thou shalt not file bankruptcy for a corporation. It’s almost a commandment from on high in my practice. But for every rule, there is an exception and the man sitting in front of me called on the exception. He wanted, (or really “needed”) to stay in the same line of construction work.  But business was […]

Fleshing Out Incorporation Before Bankruptcy

As Miss Manners might say, you, Gentle Reader, have a secret fan. A fairy god-lawyer, so to speak. She’s my law partner who watches the new bankruptcy lawyers around us, and pokes me:  “You’ve got to tell them ….” Fill in the blank for the topic du jour.  Renee thinks there’s more you should know […]

Business Bankruptcy and The Bingo Effect

The lives of business bankruptcy clients are peopled with a less than obvious cast of creditors. You need to flush them out and get them in line before the case is filed. Near miss I had a close call, or rather my client had a close call, this week when some new information just slipped […]

Is Your Debtor Corporate or Corporeal?

Mitt Romney famously insisted that corporations are people. We can disagree about the nature and quantum of rights that gives them relative to human beings, but for the purposes of a business bankruptcy analysis, Mitt was spot-on. A corporation is a legal person separate from the individuals who own the stock in the corporation. When […]