With the continuing increase in filings by both businesses and consumers, it seems almost unavoidable. Through the grapevine or by receipt of a formal notice from the court, your client has learned its client or customer has filed for bankruptcy protection.
Bankruptcy is a highly complex, subtle and specialized area of the law.
With court approval, anything can happen. Depending on the circumstances of the case and the nature of the debt, experienced bankruptcy practitioners can recommend the proper course of action. A creditor needs to understand the stature of a debtor before and after filing for bankruptcy protection. An entirely new set of rules applies as to when, how, and why Debtor can use its cash and other assets. Almost all of Debtor's assets are considered property of the bankruptcy estate.