Subchapter V of Chapter 11 of the Bankruptcy Code, which took effect four years ago, creates a more streamlined and less expensive Chapter 11 reorganization path for small business debtors....more
A recent decision from a bankruptcy court in Delaware provides a cautionary tale about the risks of involuntary bankruptcy. In the Delaware case, the debtor managed a group of investment funds. The business was all but...more
3/13/2024
/ Attorney's Fees ,
Automatic Stay ,
Bankruptcy Court ,
Chapter 7 ,
Commercial Bankruptcy ,
Damages ,
Debtors ,
Delaware ,
Involuntary Bankruptcy ,
Legal Costs ,
Willful Violations
As the townsfolk of Lubbock, Texas readied for the annual Fourth on Broadway Independence Day fireworks show and celebration, local car dealer Reagor-Dykes wanted to be front of mind. So as it had the previous year, it...more
Last year, we offered a lesson and a moral from a North Carolina district court decision reversing a $115,000 sanctions order by a North Carolina bankruptcy court.
The lesson from the case was that the bankruptcy court...more
When a debtor files bankruptcy under Chapter 11, the bankruptcy court does not automatically appoint a trustee.
Unlike Chapter 7, where the court appoints a trustee to investigate the debtor's assets, liquidate assets, and...more
9/18/2020
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Chapter 7 ,
Commercial Bankruptcy ,
Creditors ,
Debtors ,
Debtors-in-Possession ,
Liquidation ,
Perjury ,
Reorganizations ,
Trustees
We have previously informed you that if you are a small business that needed to file bankruptcy to save your company, then you may be able to take advantage of Subchapter V of Chapter 11 of the Bankruptcy Code.
The new...more
It is a cardinal sin to attempt to collect a debt or repossess collateral after a borrower files bankruptcy.
Bankruptcy triggers the automatic stay – a command, not a suggestion, that collection activity ceases. This is a...more
8/18/2020
/ Adjournment ,
Attorney's Fees ,
Automatic Stay ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 7 ,
Commercial Bankruptcy ,
Creditors ,
Criminal Prosecution ,
Embezzlement ,
Popular
Filing a bankruptcy petition automatically halts efforts to collect pre-petition debts from the debtor outside of bankruptcy.
If a creditor wants to continue a lawsuit against a debtor outside of bankruptcy, repossess...more
On Friday, August 23, 2019, the President signed into law the Family Farmer Relief Act of 2019.
The Act increases the debt limit used to determine whether a family farmer is eligible for relief under Chapter 12 of the...more
8/26/2019
/ Agribusiness ,
Agricultural Sector ,
Bankruptcy Code ,
Bankruptcy Reform ,
Chapter 11 ,
Chapter 12 ,
Chapter 7 ,
Debtors ,
Farm & Fisherman Bankruptcies ,
Farms ,
New Legislation ,
Reorganizations ,
Trump Administration
When your customer is in bankruptcy, there are two major no-nos that you must remember.
First, don't violate the automatic stay, which prevents a creditor from attempting to collect a debt while the debtor is in bankruptcy...more
6/27/2019
/ Appeals ,
Attorney's Fees ,
Bankruptcy Appellate Panel (BAP) ,
Bankruptcy Code § 524(a) ,
Bankruptcy Discharge Order ,
Chapter 7 ,
Civil Contempt Orders ,
Concurrent Litigation ,
Creditors ,
Dischargeable Debts ,
Injunctive Relief ,
Money Judgment ,
Reasonable Belief Test ,
Remand ,
Reversal ,
SCOTUS ,
Standard of Review ,
Statutory Violations ,
Taggart v Lorenzen ,
Vacated
Bankruptcy is meant to provide a fresh start for the honest but unfortunate debtor.
A debtor who files Chapter 7 does so with the presumption that all his or her debts will be forgiven or "discharged." But what about the...more
5/20/2019
/ Bankruptcy Code ,
Bankruptcy Court ,
Breach of Duty ,
Burden of Proof ,
Chapter 7 ,
Consumer Bankruptcy ,
Debtors ,
Dischargeable Debts ,
Fiduciary Duty ,
Fraud ,
Negligent Misrepresentation
In my last article, I discussed how the Fourth Circuit Court of Appeals affirmed the denial of a Chapter 7 debtor’s discharge because the debtor intentionally lowballed the value of his interest in a real estate investment...more
7/6/2018
/ Adversary Proceedings ,
Appeals ,
Bankruptcy Code ,
Business Assets ,
Chapter 7 ,
Commercial Bankruptcy ,
Congressional Intent ,
Debtors ,
Dischargeable Debts ,
False Statements ,
Judgment Creditors ,
Lamar Archer & Cofrin LLP v Appling ,
Oral Communications ,
Reaffirmation ,
SCOTUS ,
Tax Returns
The United States Court of Appeals for the Fourth Circuit—which covers North Carolina—recently decided a case that will have bankruptcy debtors thinking twice about how they complete their bankruptcy Petition and Schedules....more
The United States Supreme Court recently decided a case that will be a powerful tool for lenders dealing with borrowers who engage in schemes to avoid payment of their debts, such as an improper transfer of their assets...more