Trademarks play a major role and may be of critical importance to the survival of a business enterprise in today`s business world. Parties of trademark licenses always bear the risk of a bankruptcy filing of either contractual party. The paper discusses the faith of trademarks in U.S. bankruptcy proceedings and demonstrates the importance of specific trademark licensing considerations. One of the main issues is that U.S. bankruptcy court circuits are split on the issue of the handling of trademarks in bankruptcy proceedings, based on the interpretation of Section 365(c)(1) of the U.S. Bankruptcy Code. So far, the U.S. Supreme Court has denied certiorari. This refusal by the U.S. Supreme Court to decide on Trademark Bankruptcy Law leads to uncertainty in applicable law in the U.S. when trademarks are being licensed. To minimize the risk of losing rights and assets that are essential to the parties` businesses and their successful reorganization, this paper provides practical considerations for both licensors and licensees when drafting their license agreements; these practical considerations will be especially beneficial in case of either party`s bankruptcy filing.