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Reorganization Definition

See Also:
Debtor in Possession
Financial Distress Costs
Insolvency

Reorganization Definition

Reorganization is when a bankrupt company restructures its debt obligations without going out of business. During reorganization, the debtor retains ownership of its assets and continues business operations. The debtor then renegotiates the terms of its debt obligations to creditors. If a company is having financial trouble and is at risk of defaulting on loan payments, that company may want to consider reorganization to consolidate debts and adjust loan agreements to make payments more manageable.

Reorganization vs Liquidation

Reorganization vs liquidation are two types of bankruptcy processes. In a reorganization, the debtor retains ownership of its assets and continues business operations while renegotiating debt repayments with creditors.

In a liquidation, the creditors seize control of the debtors assets and sell them to pay off the debt. Furthermore, the debtor goes out of business and ceases normal operations. After liquidation, the entity technically no longer exists.

Chapter 11 Reorganization

Chapter 11 bankruptcy is a type of bankruptcy proceeding outlined in the Bankruptcy Code. It is also a reorganization procedure.

When a financially distressed entity files for chapter 11 bankruptcy, the entity continues to operate while it restructures its debt obligations. The entity is given a limited amount of time in which to restructure the debts. During this time the entity is protected from creditors.

Reorganization bankruptcies are usually more complex than liquidation bankruptcies. Companies usually file for Chapter 11 bankruptcy.

Don’t find yourself in that type of situation. Instead, download the Top 10 Destroyers of Value whitepaper.

Reorganization Definition, Reorganization vs Liquidation

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Reorganization Definition, Reorganization vs Liquidation

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Bankruptcy Code

See Also:
Chapter 7 Bankruptcy
Chapter 11 Bankruptcy
Bankruptcy Costs
Bankruptcy Courts
Chapter 12 Bankruptcy
Chapter 13 Bankruptcy
Bankruptcy Information

Bankruptcy Code

U.S. bankruptcy laws are stated in U.S. Code Title 11 also referred to as the Bankruptcy Code. The code consists of several chapters outlining different bankruptcy categories and procedures. Based on the debtor’s circumstances, the financially distressed debtor can file for bankruptcy under the appropriate chapter. Bankruptcies usually fall into one of two categories, either liquidation or reorganization. Furthermore, bankruptcy proceedings take place in Bankruptcy Courts.

Title 11 – Bankruptcy Code

The chapters of U.S. Code Title 11 include the following:

If you want more details regarding US Code Title 11, then go to: uscode.house.gov

Whether you are facing bankruptcy or are trying to sell, it important to get as much value as possible. If you are in that situation, then click here to download the Top 10 Destroyers of Value to maximize the value of your company as you reorganize or exit.

bankruptcy code

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Bankruptcy Chapter 13

See Also:
Bankruptcy Costs
Chapter 11 Bankruptcy
Bankruptcy Code
Chapter 12 Bankruptcy
Bankruptcy Courts
Bankruptcy Information
Chapter 7 Bankruptcy

Bankruptcy Chapter 13

Bankruptcy Chapter 13 is a type of bankruptcy proceeding outlined in the Bankruptcy Code. Furthermore, Chapter 13 is a financial reorganization procedure that applies to individual consumers and sole proprietorships.

When a financially distressed consumer or sole proprietor files for chapter 13 bankruptcy, the individual arranges to repay debt obligations with future income. Make monthly payments to a court-appointed trustee until you settle the debt. Usually, this occurs over a period of 3 to 5 years.

In addition, chapter 13 bankruptcy, individuals and sole proprietors are allowed to keep property they may have lost by filing for Chapter 7 bankruptcy.

There may have been destroyer lurking in your company, but you didn’t know they were there. If you are in a Chapter 13 or looking to be bankrupt, then download the Top 10 Destroyers of Value to maximize the value of your company.

bankruptcy chapter 13

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bankruptcy chapter 13

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Bankruptcy Chapter 12

See Also:
Bankruptcy Information
Chapter 13 Bankruptcy
Bankruptcy Costs
Bankruptcy Courts
Chapter 11 Bankruptcy
Bankruptcy Code
Chapter 7 Bankruptcy

Bankruptcy Chapter 12

Bankruptcy Chapter 12 is a type of bankruptcy proceeding outlined in the Bankruptcy Code. Furthermore, Chapter 12 is a personal financial reorganization procedure that applies only to farmers and fishermen.

When a financially distressed farmer or fisherman files for chapter 12 bankruptcy, the individual arranges to repay debt obligations with future income. Make monthly payments to a court-appointed trustee until you settle the debt. This usually occurs over a period of 3 to 5 years.

In addition, under chapter 12 bankruptcy, individuals are allowed to keep property they may have lost by filing for Chapter 7 Bankruptcy.

If you want to add value to your company, then download the Top 10 Destroyers of Value.

bankruptcy chapter 12

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bankruptcy chapter 12

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Bankruptcy Chapter 11

See Also:
Chapter 7 Bankruptcy
Bankruptcy Costs
Bankruptcy Courts
Chapter 13 Bankruptcy
Bankruptcy Code
Bankruptcy Information
Chapter 12 Bankruptcy

Bankruptcy Chapter 11

Bankruptcy Chapter 11 is a type of bankruptcy proceeding outlined in the Bankruptcy Code. Furthermore, Chapter 11 is a reorganization procedure.

Filing for Chapter 11 Bankruptcy

When a financially distressed entity files for chapter 11 bankruptcy, the entity continues to operate while it restructures its debt obligations. The entity has a limited amount of time to restructure the debts. During this time, the entity is protected from creditors.

Reorganization bankruptcies are usually more complex than liquidation bankruptcies. Companies usually file for Chapter 11 bankruptcy.

As you are reorganizing your company, download the Top 10 Destroyers of Value to learn how to identify and fix “destroyers.”

bankruptcy chapter 11

Strategic CFO Lab Member Extra

Access your Exit Strategy Execution Plan in SCFO Lab. This tool enables you to maximize potential value before you exit.

Click here to access your Execution Plan. Not a Lab Member?

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