On Bankruptcy and Mediation
Is this “absurd”? No. (Photo by Marilyn Swanson) By: Donald L Swanson What does “projected disposable income” mean as a statutory standard for plan confirmation? U.S. Supreme Court—It means what it says In Hamilton v. Lanning, 560 U.S. 505 (2010), the U.S. Supreme Court applies the term, “projected disposable income,” in a Chapter 13 plan confirmation... Continue Reading →
Consolidation? (photo by Marilyn Swanson) By: Donald L Swanson Substantive consolidation of affiliated debtors is an extraordinary remedy that should be exercised with caution. And legal standards governing substantive consolidation should focus on the effects of consolidation on the creditors of each affiliated debtor. A new opinion illustrates the substantive consolidation remedy and its application. The... Continue Reading →
A poison-pill? (Photo by Marily Swanson) By: Donald L Swanson The common law of assignments for benefit of creditors (“ABC”) has been around for centuries. ABC is a business debtor’s voluntary liquidation tool—typically utilized in cooperation with a major secured creditor. Historically, ABCs are attractive to debtors and creditors alike as an efficient, mostly out-of-court tool... Continue Reading →
A homestead (photo by Marilyn Swanson) By: Donald L Swanson Does a Chapter 7 debtor have appellate standing to protect the homestead exemption? That’s an issue addressed (sort of) in Karamoussayan v Massachusetts Department of Revenue (In re Karamoussayan), Case No. 22-041, First Circuit Bankruptcy Appellate Panel (decided April 11, 2024). Chronology Here’s a chronology. September... Continue Reading →
By the skin of its teeth (Photo by Marilyn Swanson) By: Donald L Swanson The statute for filing an involuntary bankruptcy (§ 303(b)) sets a high bar for petitioner eligibility. Specifically, a creditor cannot qualify as a petitioner under § 303(b), if any portion of that creditor’s claim is subject to a bona fide dispute. Here... Continue Reading →
Show horses? (photo by Grant Swanson) By: Donald L Swanson The opinion out of the U.S. Eleventh Circuit Court of Appeals is OHI Asset (VA) Martinsville SNF, LLC v. Wagner (In re Wagner), Case No. 22-13642 (decided September 11, 2024). The ultimate issue in Wagner is this: Should an individual Debtor be denied a discharge under... Continue Reading →
A great idea (photo by Marilyn Swanson) By Donald L. Swanson “Mandatory mediation” is a self-explanatory term. It means this: --A court (or a mediator with authority from the court) orders disputing parties to participate in a mediation process. There seems to be a reticence in the bankruptcy world, generally, toward mandatory mediation. I'm not... Continue Reading →
What is he supposed to be doing? (Photo by Marilyn Swanson) By: Donald L Swanson Here’s a Subchapter V dilemma: I’m Trustee in a Subchapter V case, in which Debtor’s plan is confirmed non-consensually (i.e., under § 1191(b)), with plan payments being made by Debtor to creditors; the fact of my presence in the case as... Continue Reading →
By Donald L. Swanson H.R. 9154 is an important-and-new bill in the U.S. Congress. It was “Introduced” in the U.S. House of Representatives on July 25, 2024, and promptly “Referred to the House Committee on the Judiciary.” H.R. 9154 is titled, “Bankruptcy Administration Improvement Act of 2024,” and is designed to “modify the compensation payable to... Continue Reading →
Reading the primer here (photo by Marilyn Swanson) By: Donald L Swanson “A restriction on the transfer of a beneficial interest of the debtor in a trust that is enforceable under applicable nonbankruptcy law is enforceable in a case under this title.” 11 U.S.C. § 541(c)(2). That is the Bankruptcy Code provision incorporating state laws on... Continue Reading →
MEDIATBANKRY 