When a contracting party declares bankruptcy, it is crucial to grasp the implications for existing contracts. This article highlights the most important legal ramifications for the non-bankrupt parties involved.

Continuation or Termination

Part 1 of this article considered some of the checks and balances that apply when seeking access to one of the law’s most potent weapons, including the tests the applicant must satisfy, and exceptions that are commonly included in the order made by the court (see ‘Freezing orders: policing the nuclear option (Pt 1)’, NLJ, 7 & 14 January 2022, p15).