Becoming Eligible For Subchapter V By A Retroactive Change In the New Law (In re Phenomenon)

Making adjustments? By: Donald L Swanson On June 21, 2022, Congress and the President (i) extend the $7.5 million debt limit for Subchapter V eligibility, and (ii) adjust other Subchapter V rules.[Fn. 1] One of the adjustments is this: formerly, an “affiliate” of any corporation did not qualify for Subchapter V; but now, only an “affiliate”... Continue Reading →

Mediation And The Boy Scouts Bankruptcy: From A Court Opinion On Plan Confirmation

Scouting? (Photo by Marilyn Swanson) By: Donald L Swanson “Without these [mediated] settlements, there is no Plan.” From Opinion on Plan confirmation, In re Boy Scouts of America, Case No. 20-10343, Delaware Bankruptcy Court, Doc. 10136, at 80 (issued July 29, 2022). The Boy Scouts of America bankruptcy has achieved a milestone: on July 29, 2022,... Continue Reading →

One Thing Wrong With ABC Laws: § 543(d)(2) Of The Bankruptcy Code (Global Safety Labs)

Problematic? (Photo by Marilyn Swanson) By: Donald L Swanson “[T]he bankruptcy court— . . . (2) shall excuse compliance . . . if . . . an assignee for the benefit of the debtor’s creditors . . . was appointed or took possession more than 120 days before the date of the filing of the petition,... Continue Reading →

U.S. Taxpayers To Foot The Bill for Alabama’s and North Carolina’s Bankruptcy Unconstitutionally?! (In re Hammons)

Who is footing the bill? (Photo by Marilyn Swanson) By: Donald L Swanson On August 15, 2022, the Tenth Circuit Court of Appeals reinstates its prior In re Hammons opinion, which deals with remedies for unconstitutionally lower quarterly fees charged to bankruptcy debtors in Alabama and North Carolina.[Fn. 1] Opinion Points Check out these points from... Continue Reading →

Judicial Supervision Over ABCs: A Problem

Supervision? (Photo by Marilyn Swanson) By: Donald L Swanson Congress must be allowed “to fashion a modern bankruptcy system which places the basic rudiments of the bankruptcy process in the hands of an expert equitable tribunal.” --from Granfinanciera, S.A. v. Nordberg, 492 U.S. 33, 94 (1989) (Blackmun dissent, emphasis added). Justice Blackmun had a point—back in 1989—that... Continue Reading →

“Forgoing Appellate Review” Through Arbitration: A Constitutional Problem For Bankruptcy Laws (Viking River Cruises v. Moriana; Nelson v. Carland)

Nonconformity (photo by Marilyn Swanson) By: Donald L Swanson When parties contract for arbitration of their disputes: they are “forgoing the . . . appellate review of the courts in order to realize the benefits of private dispute resolution”; California’s state law in question “coerces parties to opt for a judicial forum” instead of the arbitration... Continue Reading →

The Common Law Of ABCs Is Effective: And Statutory Limitations On ABCs Are Bad Policy

Temptation? (Photo by Marilyn Swanson) By: Donald L Swanson Assignment for benefit of creditors (“ABC”) laws are, historically, a debtor remedy.  ABC laws are a voluntary debtor tool for shutting down and winding up the debtor’s failed business. Ancient History ABC laws began under the common law, back in merrie olde England, arising out of the... Continue Reading →

What To Do With A Mediated Settlement After Breach? (Rivera v. Sharp)

Schrödinger’s cat? (Photo by Marilyn Swanson) By: Donald L Swanson Defendants see “both an unenforceable settlement and a binding unilateral agreement simultaneously emerging, like Schrödinger's cat,” from their lawsuit with Plaintiff, but “only one exists” and “the District Court did not err in finding the settlement agreement valid.” --From Rivera v. Sharp, Case No. 21-2254, at... Continue Reading →

A History of ABC Laws in Illinois

An Illinois city (Photo by Marilyn Swanson) By: Donald L Swanson An assignment for benefit of creditor (“ABC”) is, historically, a nonjudicial process for administering the affairs of a failed business. ABC laws are rooted in English common law and predate enactment of federal bankruptcy laws in the U.S.[Fn. 1] An ABC is made by a... Continue Reading →

Face-To-Face Discussions: Studies Show It’s The Best And Most-Popular Way To Mediate

Face-to-face discussions (photo by Marilyn Swanson) By: Donald L Swanson Common Practice. A common practice in these United States is for commercial lawsuits to be mediated in a caucus-only format.  That means: the parties never see each other during the mediation, except during the mediator’s opening comments and on visits to the toilet; andthe mediator shuttles... Continue Reading →

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