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Determining the aftermath of a bankruptcy.

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    Determining the aftermath of a bankruptcy.

    (Please forgive me if I'm WAY off on my assumptions here)

    I work for a small business that is considering extending credit to another small business. We discovered that they filed a Chapter 11 Bankruptcy about 2 1/2 years ago.

    My boss is trying to determine what the structured payment portion of the settlement was (how much those creditors noted received), and the only thing that we have at this moment is the original paperwork filed and entered on the bankruptcy petition.

    A)Is this information even attainable?
    B)If so, where?

    C)Also, we see that the petition was filed on a given date, however, does that mean that's when it took effect? Or was there a transition time between filing date and when the bankruptcy took effect?

    My knowledge of bankruptcy is shotty at best, so any information you could provide would be most helpful. Thanks!

    Honestly, I would suggest your business consult a bankruptcy attorney who specializes in business BK. The concerns your company might care about are likely far more in-depth than anyone here can answer. You may get some general ideas, even pointed in the right direction, but there are very specific issues that concern your business and the extension of credit, that will be utterly unique to your situation.

    The info you are looking for IS attainable, simply by getting a PACER account, I believe. Interpreting the information is a matter for an experienced attorney, though. It is not something that can be crash-coursed and learned quickly. Since it is a matter of public record, you simply need to look on the PACER site or contact the court where they filed for details on how to get copies of the documents.
    11-20-09-- Filed Chapter 7
    12-23-09-- 341 Meeting-Early Christmas Gift?


      My boss is trying to determine what the structured payment portion of the settlement. . .
      I assume he wants to see the Chapter 11 Plan and, assuming a Plan was approved, the Order Confirming the Plan. Such is public record. He can view it either at the bk court where the bk was filed or by signing up for the PACER service at (The site is down as I type this response.)

      As to the “effective” date of the case, all debt run up prior to the filing date is part of the case. The effective date of the Plan depends upon what the Plan and Order Confirming the Plan state. The “filing” date (which defines that debt incurred after filing is not part of the bk) and “effective” date have two vastly different meanings in the context of a Chapter 11. You boss need not be concerned that any loan his company provides (post petition debt) will be subject to the bk. Assuming the Plan has been Confirmed, the debtor is free to incur debt in the ordinary course of its operations.



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