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In almost all Corporate BKs, virtually along with the filing, especially of a C 11, there is already arranged a lender to provide "DIP", debtor in possession, financing. This provides the operating funds to keep things going as the BK is worked through. The DIP financing basically works with the creditors committee and court, and has a first claim on just about everything that happens.
Now, if your a vendor to company that files - your outstanding A/R will likely not be resolved outside of the BK process (it is called a prepetition debt). However, any new credit extended is not part of the BK, and becomes a post petition payable...hopefully using the DIP funds. Nonetheless, as credit is a matter of choice, you should get assurances before granting any new amounts to a company clearly in financial troubles. Sometimes, in these situations, especially if your a supplier of something important to keeping the Co going, the court, or the DIP financier, will arrange for guarantees.
What else can I help you with?
When should a stockholder receive payment if a company declares bankruptcy?
A stockholder should receive payment only after the claims of the creditors have been paid off if that company declares bankruptcy.
Has your bankruptcy been granted?
You probably mean discharge. A bankruptcy is not granted; it is filed. A discharge (meaning your personal liability for a debt is discharged) is granted. The court signs an order granting it. Your attorney should send it to you or, if you don't have an attorney, the court clerk should send it to you. Otherwise, you can look it up at the courthouse or online with PACER (google that word to find it).
What steps should a company take when considering filing a petition for bankruptcy?
When considering filing for bankruptcy, a company should first assess its financial situation and explore other options such as restructuring or negotiating with creditors. It should then consult with legal and financial advisors to understand the implications of bankruptcy and determine the best course of action. Finally, the company should carefully prepare and file the necessary paperwork with the bankruptcy court.
what happens when a truste appose your bankruptcy?
If a trustee opposes your bankruptcy, it means that they do not believe you should be granted discharge of your debts and, as a result, you might not be able to go bankrupt, if the trustee's position prevails.
Can you get bonded during bankruptcy?
That should be very difficult. If I were making the decision for the bonding company, I wouldn't.
When should one file for bankruptcy?
One should file for bankruptcy when ones amount of debt is so overwhelming and the calls from creditors just won't stop. Basically when your at ones end financially. But one should consult the proper bankruptcy company to discuss all ones options.
What is one company that is considered a bankruptcy business?
Bankruptcy businesses help company liquidate and close up. There are a number of companies that can tell you if you qualify. First step should however be to talk to your bank. There could be something you have overlooked. One bankruptcy business however is: Insolvency Direct.
What happens if car dealership files bankruptcy how do you pay for vehicle?
If a car dealership files for bankruptcy, someone will purchase the accounts receivable as part of the bankruptcy settlement. That person or company should contact you and tell you where to make payments.
Are vendors guaranteed payment selling a company in Chapter 11 Bankruptcy?
No, but generally they receive higher preference than unsecured creditors that issued credit prior to the bankruptcy, should the chapter 11 company go to chapter 7.
If you filed bankruptcy and have decided to sell your house Do you have to let the realtor know about the bankruptcy?
If you filed for bankruptcy and the title company knows about it, then you cannot sell your house. Your title is not free and clear so a buyer could not purchase. It also depends on the bankruptcy, you should talk to your lawyer.
Should one file for bankruptcy or settle with credit card company?
I have been considering claiming bankruptcy for quite some time now. I have no money and am a student. I was injured on the job a few years back and am going to be receiving a settlement offer from the worker's compensation company soon. The settlement would pay half of my credit card debt. Should I try to settle with the credit card company for less than I owe? Or should I still claim bankruptcy like I was planning originally? If I claim bankruptcy, will the money I get from the settlement be up for grabs? If so, can a bankruptcy lawyer negotiate a settle-for-less deal? Help!
Can a mortgagor still file a deficiency judgment on you after you file bankruptcy?
a deficiency judgment should be discharged in a chapter 7 bankruptcy. You should file after you receive the judgment.Im pretty sure this debt would be classified as a unsecured debt.Also, I could be wrong but if you have already filed a bankruptcy then the lender foreclosed and there is a deficiency , the bankruptcy would prove you were insolvent.I think you only have 90 days after you first file.Again I could be wrong. a deficiency judgment should be discharged in a chapter 7 bankruptcy. You should file after you receive the judgment.Im pretty sure this debt would be classified as a unsecured debt.Also, I could be wrong but if you have already filed a bankruptcy then the lender foreclosed and there is a deficiency , the bankruptcy would prove you were insolvent.I think you only have 90 days after you first file.Again I could be wrong.
