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ARTICLE · 22 MARCH 2017

Supreme Court Decision Alert - March 22, 2017

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Today, the Supreme Court issued two decisions, described below, of interest to the business community: Bankruptcy Code—Structured Dismissals & Copyright Act—Useful Articles

United StatesLitigation, Mediation & Arbitration

Today, the Supreme Court issued two decisions, described below, of interest to the business community.


Bankruptcy Code—Structured Dismissals

Czyzewski v. Jevic Holding Corp., No. 15-649

A business may file for bankruptcy under either Chapter 7 or Chapter 11.  In a Chapter 7 bankruptcy, a trustee liquidates the debtor's assets and distributes those assets to the creditors.  In a Chapter 11 bankruptcy, the debtor and creditors try to negotiate a plan that permits the company to operate as a going concern.  If a confirmable plan cannot be reached, a court may convert the case to a Chapter 7 proceeding or dismiss the Chapter 11 petition.

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