U.S. corporate bankruptcies have hit their highest levels since the Great Recession with no sign of slowing down. At Bast Amron, we are seeing the impact across industries—from mid-market companies quietly negotiating workouts to large corporate entities turning to Chapter 11 as a tool for strategic restructuring.
For business owners and non-bankruptcy attorneys advising clients, here are the critical takeaways:
1. Bankruptcy is a business tool, not a failure.
We see it happen too often: A company facing a difficult situation that waits until the absolute last minute, as a last resort, to call us to discuss bankruptcy options. By that time their “options” are severely curtailed. A bankruptcy may have always been inevitable but could have been shortened, made more efficient (and cheaper!), and provided a better outcome (think reoganziation versus liquidation) by early and proactive work from our bankruptcy experts. Smart business leaders recognize that consulting with a bankruptcy attorney is not a failure, it’s a strategic tool that can be used to renegotiate debt, offload liabilities, and reemerge in stronger financial positions. Waiting too long will eliminate options—timing is everything.
2. Litigation is accelerating.
For those companies that are not feeling the pinch of the current market yet, bankruptcy issues may still land on your doorstep because insolvency-related claims—such as preference actions and fraudulent transfers—are rapidly increasing. These types of claims arise when a debtor makes payment of amounts due and later files bankruptcy. When faced with these claims, you’ve likely done nothing wrong except collect an amount already due to you, but because of the timing of the payment and because other creditors were not repaid to the same extent, you’re now in the position to be threatened with suit to return those funds. We’re actively litigating these issues nationwide and guiding clients through the complexities of the causes of action, defenses, and resolution of those claims.
3. Cross-jurisdictional issues require strategic legal counsel.
Our team frequently acts as special litigation counsel in high-stakes, multi-state matters. When disputes cross state lines or borders, our national practice ensures continuity and control with attorneys barred across several states from Florida to New York and Delaware to California. And in other states we work collaboratively with a network of local attorneys to provide a continuity of strategy and knowledge base to meet the goals of our clients.
4. Your exposure may be indirect—but just as serious.
If your key business relationships include distressed companies, their insolvency could significantly impact your receivables, operations, or contracts. We provide legal guidance across an array of bankruptcy-adjacent positions: assisting creditors in protecting their rights and maximizing recovery; representing buyers of assets in insolvency sales; negotiating assumption and cure or rejection issues for contracting parties; and investigating claims and assets for bankruptcy and state court fiduciaries, and for individual creditors, involved in insolvency proceedings.
(Texas especially has become a hotbed of bankruptcy activity – not only am I barred here, but I’m also centrally located.)
Final Thought:
Facing a bankruptcy issue isn’t a moment to panic—it’s a moment to prepare. Our team helps clients assess risk, preserve leverage, and position themselves for what’s next. Whether your business is facing distress or just navigating the ripple effects, we can help.
Contact us to discuss how Bast Amron can serve as your trusted legal and strategic partner.
About DANA QUICK
Dana Quick is the first female and first LGBTQIA+ to be named partner at Bast Amron. Dana practices in the area of insolvency and commercial litigation. Her experience and expertise include prosecuting director and officer liability claims, and lender liability claims; representing trustees, creditors, creditor committees, and debtors in bankruptcy proceedings; state court insolvency litigation; and prosecuting and defending preference actions.
Dana’s experience in prosecuting director and officer liability claims spans various districts across the country, as well as many industries, including retail, energy, biotech, aerospace, non-profits, government contracting, retail, shipbuilding, and manufacturing. Her work has resulted in the recovery of tens of millions of dollars for unsecured creditors and garnered awards and recognition.