Enter to open, tab to navigate, enter to select
Filing for Chapter 11 Bankruptcy Protection Toolkit
Practical Law Toolkit w-012-5343 (Approx. 9 pages)
Filing for Chapter 11 Bankruptcy Protection Toolkit
by Practical Law Bankruptcy & Restructuring
| Maintained • USA (National/Federal) |
Resources to help companies and other eligible debtor entities and their counsel prepare and file a Chapter 11 bankruptcy case. This includes considerations and strategies for particular sectors such as retail, oil and gas, healthcare, small business, and individual filings. This Toolkit includes resources addressing issues such as bankruptcy venue, fiduciary duties, access to cash collateral and debtor-in-possession/DIP financing, data privacy and security, environmental liabilities, involuntary vs. voluntary filings, professional retentions, and first day relief.
A Chapter 11 proceeding allows a company, individual, or other eligible entity to reorganize or liquidate in a court-supervised process under the Bankruptcy Code. Before filing for Chapter 11 protection, a debtor must consider many issues, such as:
- Whether the debtor has sufficient cash on hand or financing available to fund a Chapter 11 case.
- The appropriate and best venue for filing the case.
- The documents necessary to complete the filing.
- Whether existing management will stay in place or be replaced by a Chapter 11 trustee.
- The exit strategy from Chapter 11. For example, whether reorganization as a going concern or liquidation of the debtor's business or assets in a section 363 sale will maximize creditor recoveries.
- The risk of an involuntary petition.
- Whether at least one class of creditors will support a Chapter 11 plan in sufficient number and amount.
- The risk of conversion or dismissal of the Chapter 11 case to Chapter 7.
- The fiduciary duties of a Chapter 11 debtor's officers and directors, and professionals to the bankruptcy estate.
- Data privacy and security compliance.
- Strategies for addressing environmental liabilities.
- The impact on the debtor's employees, vendors, and customers of a bankruptcy filing and how they will react.
This Toolkit contains continuously maintained practice note overviews, practice notes, standard documents, checklists, presentation materials, and articles to help companies, individuals, and other eligible entities understand, strategize, prepare, and file a Chapter 11 case.