A bankruptcy filing changes every creditor’s position immediately, and several of the most consequential deadlines run early.
The automatic stay halts collection, litigation, enforcement, setoff and lien perfection on filing. Violations expose the creditor to damages. Relief from stay is available on cause, including lack of adequate protection, or where the debtor has no equity and the property is not necessary to reorganisation.
Proof of claim. Filed by the bar date, with supporting documentation. Secured creditors should file to protect the deficiency and to establish the claim amount.
Adequate protection. A secured creditor whose collateral is depreciating may seek payments, replacement liens or other relief.
Priorities. Secured claims to the extent of collateral value; then administrative expenses; then statutory priorities including certain wage and tax claims; then general unsecured claims.
Preferences. Payments received within ninety days before filing, or a year for insiders, may be recovered. Defences include contemporaneous exchange for new value, ordinary course of business, and subsequent new value.
Executory contracts and leases may be assumed or rejected, with cure of defaults required on assumption.
Reclamation and administrative claims for goods delivered shortly before filing have short deadlines that are easily missed.