Overview: The Fifth Circuit’s highly anticipated decision on December 31, 2024, in the Serta Simmons case has significant implications for borrowers and lenders in financial distress situations. The issue on appeal concerned...more
1/3/2025
/ Bankruptcy Court ,
Bankruptcy Plans ,
Commercial Bankruptcy ,
Corporate Counsel ,
Creditors ,
Debt Restructuring ,
Debtors ,
Financial Distress ,
Indemnity ,
Lenders ,
Priority Debt
In the case of In re: McIntosh, a debt purchaser’s assertion that it was entitled to enforce a debt not correctly listed on the debtor’s bankruptcy schedules was met with significant pushback from the U.S. Bankruptcy Court...more
6/7/2024
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 7 ,
Consumer Bankruptcy ,
Creditors ,
Debt ,
Debt Buyers ,
Debt Collectors ,
Debtors ,
Due Diligence ,
Financial Services Industry
What happens to funds recovered by the trustee after the final plan payment is made in a chapter 13 case? According to the U.S. Bankruptcy Court for the District of Iowa, absent a plan provision providing otherwise, those...more
2/16/2024
/ Asset Management ,
Bankruptcy Code ,
Bankruptcy Court ,
Borrowers ,
Chapter 13 ,
Creditors ,
Debtors ,
Lenders ,
Source of Funds ,
Trust Distributions ,
Trustees
The debt purchaser in In re McIntosh argued that because it was enforcing a debt that was not listed correctly on the debtor’s bankruptcy schedules, it was entitled to assume the debt had not been discharged. The U.S....more
1/30/2024
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 7 ,
Credit Cards ,
Creditors ,
Debt ,
Debt Buyers ,
Debt Collection ,
debt-buy ,
Debtors ,
Financial Services Industry ,
Florida ,
Motion for Sanctions ,
PACER
In a unanimous decision, the U.S. Supreme Court held that Section 523(a)(2)(A) of the U.S. Bankruptcy Code precludes a debtor from discharging a debt obtained by fraud, regardless of the debtor's own...more
6/26/2023
/ Bankruptcy Code ,
Bankruptcy Court ,
Bartenwerfer v Buckley ,
Chapter 7 ,
Chicago v Fulton ,
Community Property ,
Consumer Bankruptcy ,
Debtors ,
Dischargeable Debts ,
Financial Services Industry ,
Fraud ,
SCOTUS ,
Section 362
Suppose you are a lender or credit provider to California consumers.
At the start of the pandemic, one of your customers runs up $50,000 in debt and fails to pay. You obtain a judgment and secure it by recording an...more
In a unanimous decision, the Supreme Court held that § 523(a)(2)(A) of the Bankruptcy Code precludes a debtor from discharging a debt obtained by fraud, regardless of the debtor’s own culpability. In Bartenwerfer v. Buckley,...more
On January 19, the United States Bankruptcy Court for the Western District of Virginia entered an order sanctioning a collections law firm for violating the bankruptcy discharge injunction. The court in Skaggs v. Gooch (In re...more
On January 9, the Seventh Circuit overturned its own 39-year-old precedent to find that: (1) the definition of “transfer” for purposes of section 547 of the Bankruptcy Code depends on federal, not state, law; and (2) the date...more
On July 19, 2022, the Ninth Circuit Bankruptcy Appellate Panel ruled that a creditor’s proof of claim — while meeting the standard of the Bankruptcy Code — was insufficient to enforce the debt under state law and was...more
Throughout the latter half of 2022, filing for bankruptcy became a reality for many high-profile crypto firms. The resurgence of “crypto winter” has brought many crypto-related entities to their proverbial knees. Indeed, in...more
On July 18, the maxim “not your keys, not your coin” took on a whole new meaning for customers of the bankrupt cryptocurrency exchange Celsius Network LLC, which had filed Chapter 11 in the Bankruptcy Court for the Southern...more
A key tenet of reorganization under Chapter 11 is that if the debtor’s plan impairs creditors, at least some of those creditors must agree to the plan. More specifically, “if a class of claims is impaired under the plan, at...more