The purpose of the 341 Meeting is to examine the debtor’s financial position and to confirm facts stated by the debtor in the bankruptcy filing. While creditors are not required to attend the 341 Meeting, creditors have an...more
A seller of goods may gain priority over other creditors, and enhanced prospects for payment, by taking and perfecting a purchase money security interest (PMSI) in the goods sold to a customer. This article will explain what...more
Disclosure statements and plans contain considerable information, and the most pressing issues for a creditor can vary depending on the nature of the creditor’s claim and its relationship with the debtor. This is determined...more
Preferences are a common issue in bankruptcy proceedings. The Bankruptcy Code provides several affirmative defenses to assist creditors in mitigating or eliminating their preference exposure. One such affirmative defense is...more
The Internal Revenue Code permits a business bad debt deduction when a customer fails to pay for the services rendered or the products supplied by your business. However, the ability to claim an ordinary deduction with...more
3/22/2024
/ Bankruptcy Code ,
Commercial Bankruptcy ,
Creditors ,
Debtor-Creditor ,
Debtors ,
Financial Services Industry ,
Insolvency ,
Internal Revenue Code (IRC) ,
IRS ,
Tax Deductions ,
Tax Liability
Serving as the stalking horse bidder in a Section 363 sale can provide a buyer with financial and legal protections, as well as better position the buyer to ultimately acquire the debtor’s assets. This article addresses the...more
3/7/2024
/ 363 Sales ,
Asset Protection ,
Asset Purchase Agreements ,
Asset Purchaser ,
Bids ,
Commercial Bankruptcy ,
Creditors ,
Debtors ,
Distressed Assets ,
Distressed Debt ,
Stalking Horse Bids
There are two similar but distinct mechanisms through which a creditor might net amounts owed to the debtor against amounts owed by the debtor — setoff and recoupment. Understanding the distinction between them, and how...more
2/21/2024
/ Bankruptcy Code ,
Bankruptcy Court ,
Bankruptcy Plans ,
Chapter 11 ,
Commercial Bankruptcy ,
Credit ,
Creditors ,
Debt ,
Debtors ,
Financial Services Industry ,
Recoupment ,
Sale of Assets ,
Setoff Rights
Troutman Pepper's Creditor’s Rights Toolkit is a series that provides practical insights to help creditors confront the challenges of commercial bankruptcy.
A claims agent is a third party retained by the debtor to take on...more
8/22/2023
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Commercial Bankruptcy ,
Contract Terms ,
Creditor's Committee ,
Creditors ,
Debtors ,
Non-Debtors ,
Secured Debt ,
Unsecured Debt ,
Vendors
Troutman Pepper's Creditor’s Rights Toolkit is a series that provides practical insights to help creditors confront the challenges of commercial bankruptcy.
A secured creditor is a creditor whose claim is supported by a...more
The issue of whether gathering agreements are subject to rejection in bankruptcy as executory contracts and whether certain provisions of those agreements run with the land and survive rejection will impact ongoing bankruptcy...more
7/22/2016
/ Bankruptcy Code ,
Business Judgment Rule ,
Commercial Bankruptcy ,
Covenants that Run With the Land ,
Energy Sector ,
Executory Contracts ,
Midstream Contracts ,
Mineral Exploration ,
Oil & Gas ,
Pipelines ,
Sabine Oil and Gas