Bankruptcy courts handle a wide variety of bankruptcy cases involving individuals or organizations. The following are the most common types. Their names derive from the particular chapter, or section, of Title 11, the United States Code that defines them.8 Chapter 7.Also known as a "liquidation"...
Equity securities do entitle the holder to some control of the company on apro rata basis, viavoting rights. In the case of bankruptcy, they share only inresidual interestafter all obligations have been paid out to creditors. They are sometimes offered aspayment-in-kind. Debt Securities A deb...
The parent-subsidiary framework mitigates risk because it creates a separation of legal entities. Losses incurred by a subsidiary do not readily transfer to the parent. In case of bankruptcy, however, the subsidiary’s obligations may be assigned to the parent if it can be proven that the paren...
1. Bankruptcy If businesses declare bankruptcy when they are incapable of paying back loans, forensic accountants assist creditors in recovering what they are owed. They do this by investigating activities like the secrecy of assets, confidentially exchanging and transferring property under the market va...
In bankruptcy cases, the liquidation value is used to determine how much cash is available to repay creditors. The order of priority for repayment is based on which creditors hold secured claims backed by collateral assets. ...
Criminal Bankruptcy Fraud When a complaint involves many creditors, it could lead to criminal bankruptcy fraud. The FBI (the Federal Bureau of Investigation) and U.S. DOJ (Department of Justice) generally investigate such cases. Along withbankruptcy trustees, creditors, and debtors, such cases can...
Analysis Group was retained by a creditor of a large offshore drilling rig operator that had filed for Chapter 11 bankruptcy. Our client was disputing a bankruptcy plan proposed by the debtor and hired us to provide an oil price outlook in the context of the company's valuatio...
What type of court case would establish subject matter jurisdiction? Different types of court cases have different courts that would establish jurisdiction over them. Such court cases include probation cases, traffic cases, or bankruptcy cases.What...
The second example is of Leanne, who had gone for therapy several times before; she was also taking antidepressants and saw her psychiatrist about four times a year. In addition, Leanne struggled with gambling, and she had filed for bankruptcy several years ago. In both cases, the therapist'...
The firm’s liability management and credit opportunities team helps clients facing the threat of bankruptcy to reduce debt, raise capital and buy time. The team recently advised dialysis provider US Renal Care in a capital raising and restructuring of its distressed debt. It also helped home good...