Bankruptcy 101 - Why Are We Talking To You?
Author: Lippes Mathias, Joann Sternheimer, Leigh A. Hoffman
| CPE Credit: |
2 hours for CPAs |
This course is designed to help public accountants understand (1) what bankruptcy can to (and can’t do) for clients in financial distress and (2) how to minimize loss to clients whose customer/tenant/contract party files bankruptcy. This course will equip accountants to recognize the early warning signs and guide clients in getting the protection they need.
Publication Date: February 2025
Designed For
This session is perfect for accountants and financial advisors advising clients who may need relief from trade debt, are paying over-market leases or need to monetize under-market leases, need a breathing spell to negotiate an asset sale or those whose customers/tenants or contract parties are slow paying, are trying to restructure debt and/or may be headed to bankruptcy court.
Topics Covered
- Bankruptcy Trends
- Why are bankruptcy filings on the rise and what can your client do to protect itself?
- Chapter 11 v. Chapter 7 for struggling clients
- The substantive and strategic differences between liquidation and reorganization (which are often liquidations)
- What sub-chapter V is and how it can help your small business clients
- Pros and cons of each type of bankruptcy filing
- Creditor issues
- Help your clients collect before bankruptcy to best position them if their customer/tenant/contract party files
- Apply payments strategically if bankruptcy is on the horizon
- Renegotiate contracts in anticipation of bankruptcy
- Navigating the bankruptcy process
- Automatic stay
- Proofs of claim
- Asset sales
- Rejection/Renegotiation of Contracts and Leases
- Preference and Fraudulent conveyance actions
Learning Objectives
- Describe the differences between Chapter 11 and Chapter 7 Bankruptcy
- Identify how Chapter V bankruptcy may help your small business clients
- Identify bankruptcy related issues and recognize how early intervention can maximize the benefits of bankruptcy for financially distressed clients
- Identify how to minimize losses and risks for creditor clients
- Identify how to minimize financial exposure in bankruptcy situations for your clients
Level
Overview
Instructional Method
Self-Study
NASBA Field of Study
Specialized Knowledge and Applications (2 hours)
Program Prerequisites
None
Advance Preparation
None
