AI Tools for Bankruptcy Attorneys
AI tools that help bankruptcy attorneys research case law, analyze debtor financials, track filing trends, investigate fraudulent transfers, and monitor creditor claims.
Works in Chat, Cowork and Code
Chapter 11 plan and 363 sale case research
Search bankruptcy court decisions on plan confirmation standards, cramdown requirements, 363 sale procedures, and absolute priority rule disputes. Build arguments grounded in how courts in your circuit actually rule.
Found 11 relevant cases. Break-up fee range approved: 2–4% of purchase price. SDNY standard: fees must provide a "clear benefit" to estate. In re Revlon (SDNY 2022): 3.5% break-up fee on $1.7B stalking horse approved. Courts rejected fees when bidding procedures chilled competitive bids. Recommend keeping fee at 3% with matching rights.
Debtor financial analysis from SEC filings
Analyze a distressed company's financial trajectory before it files — or after, to assess estate value. Pull balance sheets, cash burn rates, and covenant violations from 10-Ks and 10-Qs.
Yellow Corp financials (pre-filing): Revenue declined 18% over 4 quarters. EBITDA turned negative Q2 2023 (-$47M). Total debt: $1.6B. Pension liability: $3.7B. Going-concern language added Q1 2023 10-Q. Cash position fell from $280M to $70M in final quarter. Filed Chapter 11 August 2023.
Fraudulent transfer and preference investigation
Research a debtor's pre-petition transactions to identify preferential transfers, fraudulent conveyances, and insider payments within the look-back period. Find the paper trail across corporate records and public filings.
Found: Distribution center transferred to "Acme Properties LLC" (sole member: CEO's spouse). Transfer price $2.3M — recent appraisal valued at $8.7M. Acme Properties LLC incorporated 3 months before transfer. CEO's Form 4s show $4.1M in stock sales 2 months pre-filing. Strong actual fraud indicators — consider Chapter 7 trustee referral.
Exemption and discharge research
Research state-specific bankruptcy exemptions, discharge exceptions under Section 523, and recent case law on reaffirmation agreements. Advise individual debtors on asset protection and fresh start eligibility.
Florida Chapter 7 exemptions: Homestead — unlimited value if primary residence (Art. X Sec. 4 FL Const.). IRA: fully exempt (federal & Florida). Vehicle: $1,000 equity exemption only — $24K exposed to trustee. Recommendation: Florida wildcard ($1,000 personal property) can apply to vehicle. Significant vehicle equity risk — consider pre-filing planning.
Creditor recovery and claims analysis
Research the priority scheme, secured vs. unsecured creditor treatment, and recovery rates in comparable cases. Set client expectations and build negotiating strategy for plan confirmation.
Retail Chapter 11 liquidations 2021–2024: Unsecured creditor recoveries averaged 3–8 cents on the dollar in cases with secured debt above 70% of assets. Sears unsecured committee recovered 0.6¢/$. Bed Bath & Beyond: ~2¢/$. If secured lenders are fully undersecured, unsecured recovery near zero without settlement. Recommend asserting any admin priority claims for goods delivered within 20 days pre-petition (503(b)(9)).
Ready-to-use prompts
Find cases from 2018–2024 where Chapter 11 debtors successfully crammed down secured creditors under Section 1129(b). What "indubitable equivalent" standards did courts apply to replacement lien structures?
Pull the last 3 annual reports for a distressed retailer. Identify the quarter when going-concern language first appeared, the cash runway at filing, and total secured vs. unsecured debt at the time of filing.
Research the standards courts apply to actual fraud vs. constructive fraud under Section 548. In what circumstances have courts extended the reach-back period beyond 2 years using state fraudulent transfer statutes via Section 544(b)?
Compare homestead exemption amounts and eligibility requirements for bankruptcy exemptions in Texas, Florida, and California for a debtor who has lived in California for 2 years but previously lived in Texas.
Research the ordinary course of business defense to preference claims under Section 547(c)(2). What documentary evidence do courts require to prove both the subjective and objective prongs of the ordinary course defense?
Look up the corporate registration, officers, registered agent, and any related entities for a debtor LLC. Flag if any subsidiary transferred assets to affiliates in the 2 years before filing.
Research the current UNCITRAL Model Law standards applied in US Chapter 15 proceedings. What is required for "main proceeding" recognition, and how have courts treated center of main interests (COMI) disputes in 2020–2024?
Research the market terms for debtor-in-possession (DIP) financing in large retail Chapter 11 cases from 2022–2024. What interest rates, fee structures, and milestones did courts approve?
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Pre-petition fraudulent transfer investigation
Before a Chapter 11 or 7 filing, investigate potential avoidance actions to maximize estate recovery for creditors.
Individual debtor Chapter 7 eligibility analysis
Assess a consumer client's eligibility for Chapter 7, asset protection, and discharge eligibility before filing.
Frequently Asked Questions
Does the case law tool cover bankruptcy adversary proceeding decisions?
Legal Research indexes published bankruptcy court decisions including adversary proceeding opinions, confirmation disputes, and lift-stay motions. Coverage is strongest for large-case rulings published in the Bankruptcy Reporter and cases cited in circuit court opinions.
Can I search for specific debtors' court filings and PACER documents?
The SEC Filings tool covers public company disclosures. For actual bankruptcy court docket filings (motions, schedules, plans), you'll need PACER or a commercial bankruptcy docket aggregator. These tools are most useful for financial analysis and legal research in parallel with your PACER access.
How do I use the company lookup tool to find fraudulent transfers?
Company Lookup can identify related entities, shared officers/directors, and dates of incorporation. Cross-reference these against the debtor's pre-petition transaction history from SEC filings or bank records to flag suspicious transfers to newly formed affiliates or insider-owned entities.
Can these tools help analyze a reorganization plan's feasibility?
Yes. Use the Financial Calculator for DCF analysis on projected earnings, SEC Filings to review comparable reorganized companies' post-emergence performance, and Case Law to find how courts have evaluated feasibility challenges under Section 1129(a)(11) in similar industries.
Are subchapter V small business cases covered in the case law database?
Yes. The Legal Research tool includes Subchapter V small business reorganization decisions since the SBRA's effective date in 2020. This is a growing body of law and coverage includes trustee role decisions, plan confirmation standards, and discharge timing disputes.
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Works in Chat, Cowork and Code