Q: Hi I would like to know how the law works when u have a case against a company but they file bankruptcy,
They are still operating and opening new businesses how does that work. Does it mean they are out of bankruptcy.
A:
Most businesses that file a bankruptcy case use Chapter 11 of the Code, in what is called a reorganization. Several of the US airlines have done so, some more than once.
In a corporate Ch. 11, it is the norm to continue to operate the business.
If your "case" against the bankrupt company is pending litigation in some other court, you can file a Motion with the bankruptcy court to get relief from the automatic stay to allow you to complete your litigated case. Failing that, your procedure is to file a Proof of Claim in the bankruptcy case. If the debtor corporation disputes your claim, it will file an Objection to Claim, which then triggers an evidentiary hearing in the bankruptcy court.
John E. Pytte and Timothy Denison agree with this answer
A: I second Mr. Winterstein's reponse. I would only add that every Chapter 11 is different and it would be worth consulting an attorney who could review the Chapter 11 plan and advise on your best course for the case at hand.
Timothy Denison agrees with this answer
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