On Bankruptcy and Mediation
By: Donald L. Swanson The U.S. economy is constantly changing; and our bankruptcy laws must change with it. The months of March and April, 2020, bring massive disruptions in our economy; and our bankruptcy laws must adjust. Here are a few of the needed changes: Middle class debtors must be allowed to select Chapter 7 relief;... Continue Reading →
The progress of bankruptcy mediation is nearly-always upward: toward expanding the use of local mediation rules.
By: Donald L Swanson Five different bankruptcy courts have allowed Subchapter V designations for debtors whose Chapter 11 cases were already existing on the effective date (February 19, 2020) of the Small Business Reorganization Act (“SBRA”). And their opinions are instructive on procedures and legal standards for doing so. These five cases run the gamut of... Continue Reading →
The Uschold v NSMG opinion provides another illustration of the post-settlement work that mediation can accomplish when a court must weigh-in on the merits of a mediated agreement.
By: Donald L Swanson The CARES Act (“Coronavirus Aid, Relief, and Economic Security Act” ) is now law—and has been since March 27, 2020. Bankruptcy Amendments in CARES Act Sec. 1113 of the CARES Act deals with “Bankruptcy” and contains the following provisions. Eligibility for Small Business Bankruptcy. Total-debts eligibility for the Small Business Reorganization Act... Continue Reading →
Mediation must adapt now and embrace the distancing.
By: Donald L Swanson One of the travesties of our current bankruptcy laws is the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (aka “BAPCPA”). Here’s why BAPCPA is a travesty: The Bankruptcy Code (enacted in 1978), (i) recognized the existence of honest but unfortunate debtors, and (ii) presumed each individual debtor to be just... Continue Reading →
By: Donald L Swanson Defendant “seriously breached her fiduciary duties” as a member of the Official Committee of Unsecured Creditors. Naylor v. Farrell (In re Farrell), 610 B.R. 317, 323 (Bkrtcy.C.D.Cal. 2019). Facts Here’s what happened: Defendant failed to play by the rules. Debtor filed a voluntary Chapter 11 bankruptcy. Debtor and and his spouse (the... Continue Reading →
Their ability to hunker down and survive is dependent, first and foremost, on the continuing availability of cash.
Economic fallout from the corona virus will leave many formerly-successful businesses in financial stress.
MEDIATBANKRY 