Knowledge Base

What are the general types of bankruptcy Cases?

Category: Bankruptcy 101

1. Pre-packaged: Full agreement between all parties before the bankruptcy on how the bankruptcy process plays out. These cases can get in/out of court within weeks. The record is actually less than 24 hours.

2. Pre-arranged: Agreement between most parties but not all, enough to have confidence that the bankruptcy process will play out as expected by the Debtor.

3. Free-fall: No agreement. these are the most contentious and can go on for years while the parties argue in court.