Bankruptcy, unfortunately, is becoming more frequent and is being done by many well-known companies. Last month I cowrote an “Overview of Bankruptcy” article with my partner Ken Degraw, who specializes in bankruptcy and insolvency.
The article covers Chapters 7, 11 and 13 and the new Chapter 11 Subchapter V. We also include checklists on how a vendor can be protected from a customer that might be considering a Chapter 11 and how to avoid a Chapter 11 by setting up an informal arrangement.
Each of the bankruptcy versions are explained, shown where they are applicable, the effect on the debtor as well as its creditors, what debts are not covered and remain and the rights of those creditors, the tax issues, roles of professionals that need to be engaged and the timing of the filing. While this article was written for fellow professionals, we believe any business person would benefit from reading it, and many laypeople would get a better understanding on its effects and process, so we are calling it to your attention with this blog.
Here is a link to our article that was posted at the site of the National Association of Certified Valuators and Analysts. After you’ve read this, you can search “Mendlowitz” for many of my other postings on that site.
Kenneth DeGraw, CPA, CFP, CFE, CFF, is a partner with WithumSmith+Brown, PC in Whippany, New Jersey. He specializes in bankruptcy and insolvency consulting, financial forensics, and tax controversy.
Mr. DeGraw can be contacted at (973) 898-9494 or by e-mail to [email protected].
If you have any business or financial issues you want to discuss please do not hesitate to contact me at [email protected].
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