Matador Legal

United States recorded 7,514 business bankruptcies in May 2009, a rise of 40% over the same month last year. The total number of companies which have filed for Bankruptcy since the last 18 months stands at over 100,000.
The creditors of these companies, mostly Bankers, are more willing to liquidate the company and sell of the [...]

Business Bankruptcies have risen by 11 % in the first quarter in 2009, compared to 2008. According to American Bankruptcy Institute’s data here, 14,319 business filings were prepared in US. Bankruptcies are usually considered a lag indicator for the economy, as in it lags business life cycles.
Among these 9700 were chapter 7 filings. The Pittsburgh area [...]

Yesterday, in our post Consumer Bankruptcy: FAQ, we discussed the two types of petitions in bankruptcy: a Voluntary petition, which a debtor files in a court and an involuntary petition where the creditors file for the debtor’s bankruptcy.
The recent case of Bender Shipbuilding & Repair Co. is an example of an involuntary petition. The [...]

The norm for a business with an entity separate from that of its owners is to either file a Chapter 7 (Liquidation) petition or a Chapter 11(Business Reorganization) petition depending on the future of the business.

Only in the rarest of rare cases can a business file under Chapter 13 (normally reserved for consumer [...]