At a Glance
Type of work | Transactional + litigation
Who you advise | Distressed companies, creditors, equity holders, ad hoc creditor groups
Pace | Can be extremely intense — especially in Chapter 11 cases with liquidity crises
Law school relevance | Bankruptcy, Secured Transactions, Corporations, Contracts
What Is It?
Restructuring and bankruptcy law deals with companies in financial distress. Lawyers in this area help businesses reorganize their obligations, negotiate with creditors, or — in some cases — liquidate. The practice combines elements of M&A, finance, and litigation, and involves both in-court proceedings (Chapter 11 bankruptcy) and out-of-court restructurings. It is one of the most intellectually diverse practice areas in corporate law.
What Will You Actually Do?
- Advise companies, creditors, or investors in distressed situations
- Negotiate restructuring agreements and debt-for-equity swaps
- Represent clients in Chapter 11 bankruptcy proceedings
- Advise on distressed M&A — the purchase of assets out of bankruptcy
- Help manage complex financial and operational turnarounds
As a Junior Lawyer, Expect To…
- Draft and negotiate restructuring support agreements, plan term sheets, and intercreditor arrangements
- Review credit agreements and bond indentures to map out a distressed company’s debt structure
- Assist on distressed asset sales and Section 363 transactions
- Model and track creditor recoveries under different restructuring scenarios
This Might Be a Good Fit If You…
- Are interested in both litigation and transactional work
- Want to understand the full financial architecture of businesses
- Thrive under pressure and in fast-moving situations
- Enjoy complex problem-solving at the intersection of law and finance
Key Terms to Know
- Chapter 11: The U.S. bankruptcy process that allows a company to reorganize its debts while continuing to operate.
- Debtor-in-Possession (DIP): A company that continues to operate its business while going through Chapter 11.
- Automatic Stay: A court order that immediately stops creditors from collecting debts or taking action against a company once it files for bankruptcy.
- Plan of Reorganization: The roadmap for how a company will restructure its debts and emerge from bankruptcy.
- Distressed M&A: Buying assets or companies that are in financial difficulty — often through a Section 363 sale in bankruptcy.