Bankruptcy

This is FindLaw’s collection of Bankruptcy articles, part of the Finance section of the Corporate Counsel Center. Bankruptcy law is federal statutory law contained in Title 11 of the United States Code. Congress passed the Bankruptcy Code under its constitutional grant of authority to "establish… uniform laws on the subject of Bankruptcy throughout the United States." Bankruptcy proceedings are supervised by and litigated in the United States Bankruptcy Courts. Find information about bankruptcy laws, including answers to some of the most frequently asked questions. Law articles in this archive are predominantly written by lawyers for a professional audience seeking business solutions to legal issues. Start your free research with FindLaw.

Finance

Bankruptcy Articles

The Most Frequently Asked Questions Concerning the Bankruptcy Process

1. A. You should not consider Bankruptcy creditor protection unless your credit is already affected by Sheriff's sales, Wage garnishments, Repossessions, Foreclosures, Law Suits, Judgments, or Creditor Harassment, or if you anticipate any of these ...
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The National Bankruptcy Review Commission

When I first became a member of the House of Representatives in 1973, I was assigned to the Judiciary Committee. At about the same time, the Committee received an extensive report on revision of the national bankruptcy law, the product of a ...
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The Preference Action, the Trade Vendor, and the Contemporaneous Exchange Defense

Here's a scenario that may be all too familiar. A key customer has been steadily falling further and further behind on its account. You delicately begin to enforce existing credit limits, walking the fine line between trying to spur collections and ...
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The Role Of Compensation Committees In Corporate Governance

When the Enron, Worldcom, Tyco and related corporate scandals surfaced a few years ago, the immediate attention was on financial irregularities and their intended watchdogs: audit committees. Legislation, regulation and investor scorecarding have ...
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Trustees May Be a Target of IRS Audits

A recent article in The Bond Buyer reported that the IRS will begin an audit program sweep this summer to examine whether the failure by trustees to roll escrow funds held under refunding escrows for tax-exempt issues into zero-interest rate State ...
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U.S.-Canada Cross-Border Corporate Finance

Despite challenges posed by accounting and tax issues, income securities continue to be the focus of cross-border finance transactions. Last year we wrote about the explosive growth in "specialty business" income fund offerings in Canada and the ...
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U.S. Supreme Court Decision Signals Shift in Lender’s Bargaining Power

The U.S. Supreme Court has armed senior creditors with a new weapon against debtors who default, file for relief under Chapter 11 and then attempt to unilaterally impose "cramdown" reorganization plans on their creditors. In a much anticipated ...
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UBIT Issues Facing Aquariums

I. ISSUE: WOULD GIFT SHOP SALES, FOOD SALES, FACILITY RENTAL AND THE SALE OF MEMBERSHIP LISTS BY A TAX-EXEMPT AQUARIUM BE SUBJECT TO THE UNRELATED BUSINESS INCOME TAX? A. Introduction. This memo discusses whether the income from gift shop sales ...
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Unchartered Waters: The New Value Exception to the Absolute Priority Rule After LaSalle

A. The New Value Exception to the Absolute Priority Rule refers to a device used by plan proponents to obtain confirmation of Chapter 11 plans in many cases. The Absolute Priority Rule refers to Bankruptcy Code '1129(b)(2)(B) and (C) (11 U.S.C ...
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Understanding Bankruptcy Preference Law Just Saved My Business a Bunch of Money

A popular, nationally-known insurance company advertises that it can save its audience/customer base "a bunch of money" if they takes fifteen minutes of their time to analyze their present insurance costs. Like this insurance company, businesses ...
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