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

How To Get Your Share Of Venture Capital Financing

Wall Street is flourishing at unheard-of levels and is creating record amounts of wealth for many investors. Because so much cash is in the market, there has never been a better time for entrepreneurs to begin that long-dreamed-of business venture ...
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How a Municipality Shoud Respond to a Bankruptcy Petition

The role of a municipality should take in a bankruptcy proceeding depends on the form of relief sought by the debtor. The issue of filing a Proof of Claim, however, will be relevant in all cases. Generally, a municipality is a secured creditor of ...
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Gambling Claims: Objecting to Discharge Under Sec. 523 (a)(2)(A)

There has been considerable attention, both in the media and among our various credit card clients, to the rise in popularity of gambling casinos as a revenue source for credit card issuers and users. This has created a very significant issue in the ...
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Creditor’s Failure to Prosecute Non Discharge-ability Action May Lead to Sanctions Under 11 U.S.C. ? 523(d)(2) for Attorney’s Fees

On January 21, 1999, the Bankruptcy Appellate Panel for the Tenth Circuit ("BAP") reversed the court below, and held that creditors who fail to pursue a nondischargeability action under Section 523(a)(2) of the Bankruptcy Code may be subject to ...
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Financial Services Update

In an important and recent decision, the Third Circuit dismissed a Chapter 11 petition when a financially healthy debtor lacked a valid re-organizational purpose. The debtor, therefore, surmised the Court, lacked the requisite "good faith" to file a ...
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Eighth Circuit: Secured Creditor’s Collateral can be Surcharged to Pay for Chapter 11 Administrative Expenses

A Chapter 11 debtor's post-bankruptcy workers' compensation premiums can be surcharged against a secured creditor's collateral despite the general rule prohibiting such surcharge. The Eighth Circuit Court of Appeals recently ruled that Section ...
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Eighth Circuit Holds Only Trustee Can Surcharge Collateral Under Section 506(c)

In Hartford Underwriters Insurance Company v. Magna Bank (In re Hen House Interstate, Inc.), a 6-5 majority of the United States Court of Appeals for the Eighth Circuit recently ruled that a nontrustee claimant lacks statutory standing to seek ...
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DuPont in Our Backyard

It has been more than 10 years since the chair of DuPont asked his legal department to determine how the company could get better value for its legal dollar. Otherwise put, the general counsel was asked to figure out how to reduce outside counsel ...
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Dischargeability of Income Tax Bankruptcy

Although having knowledge that taxes are dischargeable in bankruptcy, many attorneys still perceive that the tax collector elbows everyone aside and gets paid. Personal income taxes are dischargeable. Practitioners should know the basic requirements ...
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Creditor’s Reclamation Rights Rendered Valueless Against Rights of Secured Creditor

In Galey & Lord, Inc. v. Arley Corporation (In re Arlco, Inc.), the United States Bankruptcy Court for the Southern District of New York held that a creditor's reclamation rights were subordinate to the rights of a perfected secured creditor in the ...
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