Though many bankruptcy proceedings begin when debtors choose to file petitions for bankruptcy protections, readers of this Cranberry Township bankruptcy law blog may be surprised to know that in Chapter 11 bankruptcy, a creditor can file to initiate the proceedings....
Firm News
Why do so many businesses file for Chapter 11 bankruptcy?
Readers of this Pennsylvania bankruptcy law blog may be interested to know that there are a variety of different forms of bankruptcy protections. Contrary to what some may believe, bankruptcy is not a single process that applies to individuals and businesses alike;...
Tire recycler files Chapter 11 bankruptcy for debt restructure
A local business has filed Chapter 11 to take advantage of the law's provisions that allow it to continue operating while it reorganizes its finances. Edge Rubber is located in Chambersburg, and the filing occurred in the U.S. Bankruptcy Court for the Middle District...
Church districts file bankruptcy to mediate injury settlements
A business or non-profit entity that is burdened with personal injury litigation may find it critically helpful to file a Chapter 11 bankruptcy in order to compensate victims and put an end to future litigation. This has proved particularly applicable to the situation...
Newspaper takes bankruptcy option to find new financial strength
A Pennsylvania business could file bankruptcy so that its chief officers can attempt to reaffirm control over a restructured company. This may include a new, reduced debt load, new financing and an organizational revamping of management. An example of this...
Bankruptcy does not preclude small business from new loans
Because bankruptcy is a federal remedy and is guided by the U.S. Bankruptcy Code, the general procedures and basic legal principles for a small business bankruptcy will be largely the same in Pennsylvania as in other states. Many businesses close after a bankruptcy,...
A motivated small business can find life after bankruptcy
Surprisingly, a study sponsored by the U.S. Small Business Administration found that many small businesses with less than 500 employees that went into bankruptcy were rejuvenated as successful business ventures within seven years of the bankruptcy discharge. The...
Disputes with one creditor may be resolved by bankruptcy filing
In Pennsylvania and all other jurisdictions, when a business encounters disruptive disputes with a major creditor, the company may attempt in some circumstances to resolve the issues by filing a Chapter 11 petition. That is the general intent behind a recent Chapter...
Hospital nudges state agency by seeking bankruptcy protection
It is not unheard of in Pennsylvania and elsewhere for hospitals and other medical providers to seek debt relief by filing a bankruptcy petition. There are several circumstances that can converge to make it a smart move for a medical provider or other corporate...
Chapter 11 gives business the chance to re-structure old debt
When a business in Pennsylvania or elsewhere files a Chapter 11 bankruptcy reorganization case, there are several key benefits that it may legally pursue in its own behalf. Importantly, the business does not have to close its doors and may continue operating during...