Creditors, Bankruptcy Code, Bankruptcy Appellate Panel (BAP)

When It Counts: Fully Secured and Paid-Off Creditors Can Count as Petitioning Creditors for Involuntary Bankruptcy Petitions

Pillsbury Winthrop Shaw Pittman LLP on 12/10/2024

In a recent pair of decisions, the Ninth Circuit Bankruptcy Appellate Panel held that even fully secured creditors with nonrecourse claims and unsecured creditors who are paid off after the involuntary petition may qualify as...more

Supreme Court Limits the Ability to Discharge Debts Obtained by Fraud

Miller Nash LLP on 3/8/2023

The discharge provided in bankruptcy is fundamental, allowing the “honest but unfortunate” debtor a fresh start. There are various exceptions to the discharge found in Sections 523 and 727 of the Bankruptcy Code—designed to...more

Profit Motive? Not Required for Subchapter V Eligibility

Pillsbury Winthrop Shaw Pittman LLP on 5/25/2022

The Ninth Circuit BAP explains that “commercial or business activities” that satisfy section 1182(1)(A)’s Subchapter V eligibility requirement “would include not-for-profit businesses, and would not be limited to those having...more

Oversecured Creditor's Right to Contractual Default-Rate Interest Allowed Under State Law

Jones Day on 8/27/2020

It is generally well understood that an "oversecured" creditor is entitled to interest and, to the extent provided for under a loan agreement, related fees and charges as part of its secured claim in a bankruptcy case....more

Taggart v. Lorenzen, The State Of Bankruptcy Contempt Power Eight Months Later

BCLP on 2/10/2020

So you (allegedly) violated a bankruptcy court order. Whether the debtor alleges you violated the terms of a confirmed plan, failed to provide certain notices required by the bankruptcy rules, violated the discharge...more

Where a “Fair Ground of Doubt” Can Create Comfort: Taggart v. Lorenzen

Bradley Arant Boult Cummings LLP on 6/7/2019

In a unanimous, and perhaps unsurprising, decision, the Supreme Court determined that a creditor may be held in civil contempt for violating the discharge injunction if there is “no fair ground of doubt” as to whether the...more