An Ancient Bankruptcy Law in China

By: Donald L. Swanson Centuries ago (during the 1200’s) the Mongols ruled China. Mongol law in China "provided for declarations of bankruptcy.”  Here are some details: —“no merchant or customer could declare bankruptcy more than twice as a way to avoid paying debts”; and —“On the third time he faced the possible punishment of execution.” [Fn.... Continue Reading →

Appeals to Bankruptcy Appellate Panels and “Sandbagging”

By: Donald L. Swanson One of the best innovations in the U.S. bankruptcy system is creation of bankruptcy appellate panels (“BAPs”), as a division of the U.S. circuit courts of appeals.  BAPs hear appeals of bankruptcy court decisions. Currently, there are five BAPs, one in each of the following circuits: First, Sixth, Eighth, Ninth and... Continue Reading →

Effects of Executory Contract Rejection — At U.S. Supreme Court

By: Donald L. Swanson Here’s a case about the effects of executory contract rejection. While its focus is on “intellectual property” rights under § 365(n) [Fn. 1], the case also delves into the effects of rejection for all types of executory contracts under § 365(g) [Fn. 2]. And this case demonstrates the hazards of a failure... Continue Reading →

Successor Liability After Bankruptcy Sales: Actual Knowledge v. Constructive Notice, at U.S. Supreme Court

By: Donald L. Swanson Imagine buying assets out of bankruptcy at a fair price, only to have a previously-unknown liability tag along. --Surprise, surprise! The U.S. Supreme Court has an opportunity to weigh-in on such a “Surprise, surprise” issue.  A petition for writ of certiorari is pending in a case where this could happen—complete with a $63... Continue Reading →

Business Owners Shifting Risks of Failure to Trade Creditors: Solutions are Needed

By Donald L. Swanson “Lending to the most highly indebted companies in the U.S. and Europe is surging.”— Wall Street Journal [Fn. 1] When a large business files for bankruptcy, there is one group that almost always suffers. It is a group with little-to-no power. It is the unsecured trade creditors. It is those that supply... Continue Reading →

Entrepreneurs in Bankruptcy Deserve Respectful Treatment, Not Punishment (In re Romero)

By: Donald L Swanson Many people live the American Dream. They’ve started a business and are succeeding. They’re what makes the U.S. economy work. But bad things can—and do—happen to them: things like product obsolescence, economic downturn, health problems, a costly mistake, bad luck. Such things can destroy their Dream and can destroy the entrepreneurs themselves.... Continue Reading →

Fraudulent Transfers: U.S. Supreme Court Lets an Injustice Stand (Henry v. Weiss)

By: Donald L. Swanson The case is Henry & Buresh v. Weiss (Supreme Court Case No. 17-1210). The U.S. Supreme Court denied certiorari on May 29, 2018. This denial allows an injustice to stand, which is a travesty. I’ll try to explain. Facts Michael Bello was sole shareholder, director, and president of Walldesign, Inc. Over a... Continue Reading →

Crime & Punishment & Bankruptcy at U.S. Supreme Court (Lagos v. United States)

By: Donald L. Swanson It’s not every day that the U.S. Supreme Court makes a pronouncement on criminal law in the context of a bankruptcy case. But that’s what happened on Tuesday (May 29, 2018) in the Supreme Court’s Lagos v. United States opinion (Case No. 16-1519). Bankruptcy Facts On February 2, 2010, a trucking enterprise, USA... Continue Reading →

U.S. Supreme Court Upholds Arbitration–Again! What’s the Effect on Bankruptcy? (Epic Systems v. Lewis)

By: Donald L. Swanson Last week, the U.S. Supreme Court made its latest pronouncement upholding arbitration: Epic Systems Corp. v. Lewis, U.S. Supreme Court Case No. 16-285 (issued May 21, 2018). The pronouncement follows a long line of precedents upholding and enforcing arbitration agreements, founded on the Federal Arbitration Act. This article explores the Epic Systems v. Lewis decision... Continue Reading →

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