Every three years on April 1, the dollar amounts in the Bankruptcy Code are adjusted to account for inflation. The April 1, 2025, increase will be approximately 13.2%, even larger than the nearly 11% increase three years ago....more
2/12/2025
/ Bankruptcy Appeals ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Chapter 13 ,
Commercial Bankruptcy ,
Debt Restructuring ,
Debtors ,
Inflation Adjustments ,
Involuntary Bankruptcy ,
Reorganizations
On June 27, 2024, the United States Supreme Court issued its long-awaited opinion in Harrington v. Purdue Pharma L.P., holding that the Bankruptcy Code does not permit nonconsensual releases of nondebtors.
As a...more
In March, Miller Canfield noted that the previously expanded debt limits for bankruptcy cases under the Small Business Reorganization Act ("SBRA," a.k.a. "Subchapter V") and under chapter 13 were set to revert on June 21,...more
In 2022, Congress passed the Bankruptcy Threshold Adjustment and Technical Corrections Act (the “Act”), raising the debt limits for bankruptcy cases under the Small Business Reorganization Act (“SBRA,” a.k.a. “Subchapter V”)...more
On April 26, 2023, Miller Canfield alerted readers to the Supreme Court opinion in MOAC Mall Holdings, LLC v. Transform Holdco, LLC. The MOAC decision may affect property sales in bankruptcy cases because it could weaken the...more
3/1/2024
/ 363 Sales ,
Bankruptcy Code ,
Bankruptcy Court ,
Commercial Bankruptcy ,
Jurisdiction ,
Leases ,
MOAC Mall Holdings LLC v Transform Holdco LLC ,
Real Estate Transactions ,
Real Estate Transfers ,
Sale of Assets ,
SCOTUS ,
Section 363 ,
Stays
In a breach of warranty deed claim, the Michigan Supreme Court ruled in favor of the sellers of a condominium unit and unanimously decided on July 12, 2023, in Galvan v Poon that a building code violation discovered after the...more
On May 25, 2023, the United States Supreme Court issued its decision in Tyler v. Hennepin County, Minnesota, holding that a state tax foreclosure violates the “Takings Clause” of the U.S. Constitution when it “provides no...more
In January, Miller Canfield reported on Lowry v. Southfield Neighborhood Revitalization Initiative (In re Lowry), an opinion from the Sixth Circuit Court of Appeals. Lowry held that a taxpayer in bankruptcy could challenge a...more
A recent opinion from the Michigan Court of Appeals explained that when a debtor defaults under a confirmed chapter 11 bankruptcy plan, a creditor can enforce its rights in state court, and perhaps also in the bankruptcy...more
A recent opinion from the Sixth Circuit Court of Appeals has opened a new door for a taxpayer to challenge a Michigan tax foreclosure sale. The opinion held that the challenge could proceed where the property value was...more
Key Takeaways -
..The Michigan Court of Appeals rejected an effort to allow class action recovery of excess proceeds from the sale of tax foreclosed properties.
..The Court ruled that the Michigan Supreme Court's 2020...more
1/14/2022
/ Appeals ,
Case Consolidation ,
Class Action ,
County Assessors ,
Filing Deadlines ,
Foreclosure ,
Income Taxes ,
MI Supreme Court ,
Notice Requirements ,
Putative Class Actions ,
Retroactive Application
The SBA recently issued its Procedural Notice on when a lender may request the SBA to honor its guaranty of a PPP loan. The PPP loan program has been in place for over a year and has provided billions of dollars of assistance...more
7/22/2021
/ Banking Sector ,
Change of Control ,
Charge-Off ,
Commercial Bankruptcy ,
Government-Guaranteed Loans ,
Lenders ,
Loan Forgiveness ,
New Guidance ,
Paycheck Protection Program (PPP) ,
Proof of Claims ,
SBA ,
SBA Lending Programs
Lenders often include fees in loan transactions in addition to an interest rate. Typically such fees are not considered interest, as they compensate the lender for various services or commitments provided under the loan...more
The Michigan Court of Appeals recently held that assessments on a property under a development agreement between a city and the property's former owner did not survive a tax foreclosure and therefore were not liens against...more
Bankruptcy law has seen many changes in 2020 and 2021. Some of these were enacted in response to COVID, but many other changes were included in the Bankruptcy Code before the pandemic. This article highlights some of these...more
4/5/2021
/ Bankruptcy Code ,
CARES Act ,
Commercial Bankruptcy ,
Consolidated Appropriations Act (CAA) ,
Coronavirus/COVID-19 ,
Landlords ,
Lenders ,
Relief Measures ,
Small Business ,
Small Business Reorganization Act of 2019 (SBRA) ,
Suppliers
In June and December of 2020, Miller Canfield reported that the Fifth and Eleventh Circuits had held that the Small Business Administration ("SBA") may exclude debtors in bankruptcy from consideration for Paycheck Protection...more
1/18/2021
/ CARES Act ,
Commercial Bankruptcy ,
Consolidated Appropriations Act (CAA) ,
Coronavirus/COVID-19 ,
Corporate Counsel ,
Debtors ,
Interim Final Rules (IFR) ,
Lenders ,
Paycheck Protection Program (PPP) ,
Relief Measures ,
SBA ,
SBA Lending Programs ,
Small Business
In June of 2020, Miller Canfield reported that the Fifth Circuit held that a Texas bankruptcy court had exceeded its authority when it ordered the SBA Administrator to make a Paycheck Protection Program (PPP) loan available...more
When a loan becomes distressed, it is essential for the secured lender to conduct a file review to determine if there are any deficiencies that need to be addressed. If deficiencies are not addressed, the lender’s collateral...more
The Uniform Commercial Real Estate Receivership Act (“UCRERA”), adopted by Michigan in 2018, originally applied only to receiverships over commercial real estate. An amendment effective October 15, 2020, shortens the name of...more
In the SBA Procedural Notice dated October 2, 2020 (the “Approval Notice”), the Small Business Administration (“SBA”) has issued mandates that may impact the ability of a recipient of a Paycheck Protection Program (“PPP”)...more
10/16/2020
/ Acquisitions ,
CARES Act ,
Change in Control ,
Change in Ownership ,
Coronavirus/COVID-19 ,
Federal Loans ,
Mergers ,
Notice Requirements ,
Paycheck Protection Program (PPP) ,
Sale of Assets ,
SBA ,
SBA Lending Programs
In prior practice pointers, we discussed how a statute of frauds provides protection for financial institutions and how a prenegotiation agreement also can provide protection. Do these mean that you can write or say whatever...more
Some states feature statutes of frauds that protect lenders, but not all such statutes of frauds protect all lenders, and some offer more protection than others. Just as critically, many people now communicate predominantly...more
In a prior practice pointer, we discussed the importance of reservation of rights letters. However, there are times when a lender will want to start enforcing one or more rights or remedies....more
The short answer is that an agreement is enforceable against a bank when the agreement is in writing and signed by the bank. But, the answer really depends on the jurisdiction involved....more
Many of the state and federal courthouses in Michigan, Illinois, Indiana and Ohio are not open to attorneys or to other members of the public, with some exceptions. While the signs may say “Closed, Do Not Enter;” the courts...more