MEMBERS-ONLY CLE: Advantages & Disadvantages of Involuntary Bankruptcy Filings as Debt Collection Strategy

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Companies thwarted in their initial attempts to collect a debt may be tempted to invoke the "nuclear option" and consider filing an involuntary bankruptcy petition against the account debtor. There are benefits to be gained by this strategy, to be sure, but companies, their in-house counsel, and even their outside counsel often lack an appreciation for the substantial risks, material costs, and hidden traps for the unwary that beset an involuntary bankruptcy filing. This strategy can prove ultimately effective often more so than more conventional collection strategies""but in many situations is not one to be employed lightly or without expert advice from counsel highly experienced in bankruptcy matters. Jordan Kroop and Brad Cosman have decades of experience between them in advising creditors and debtors with respect to this once-unusual and now increasingly popular debt collection strategy. Perhaps nowhere else in the realm of debt collection can one better witness the law of unintended consequences at play than with involuntary bankruptcy filings.

PRESENTERS:

Bradley Cosman distinguishes his legal practice by drawing on his unique financial experience. A former corporate turnaround advisor with FTI Consulting, and a Certified Insolvency and Restructuring Advisor (CIRA), Bradley has experience across multiple aspects of corporate restructuring including legal, accounting, operational, strategic and financial. Bradley is adept at helping clients identify and implement unique and innovative business solutions to complex restructuring and liquidity problems.

A corporate bankruptcy, restructuring and reorganization attorney, Jordan Kroop represents debtors, official committees, acquirers, and significant creditors in Chapter 11 matters involving publicly traded and privately held companies throughout the nation. His representation of creditors includes secured lenders, committees, lessors and institutional lenders. Jordan is a partner in the Bankruptcy & Restructuring group of the Corporate practice.

PROGRAM MATERIALS