A Fork in the Road: File for Receivership, or Force a Chapter 11? Either Way Can Be Bumpy

Partners Frank DeBorde and Lisa Wolgast and counsel Jason Watson co-authored an article for the ABI Journal entitled “A Fork in the Road: File for Receivership, or Force a Chapter 11? Either Way Can Be Bumpy.” The article, which appears in the current issue of the ABI Journal, examines the strategic considerations secured creditors face when deciding between receivership and bankruptcy.

The authors highlight how factors such as collateral type, jurisdiction, cost, speed and desired outcomes — whether liquidation or a going-concern sale — can significantly influence the optimal path, underscoring that each option carries distinct advantages and trade-offs in control, efficiency and legal certainty.

“Ultimately, choosing between receivership or a chapter 11 requires a careful balancing of many factors,” they wrote. “Regardless, as baseball legend Yogi Berra once said, ‘When you get to a fork in the road, take it,’ as the risk of inaction invariably only grows with time.”