Correcting a Defect in Chapter 7: New Effort to Overturn Dewsnup v. Timm

By: Donald L. Swanson You know how bankruptcy debtors can strip-away out-of-money liens in Chapters 11, 12 and 13, using 11 U.S.C. § 506? Well . . . they can’t do it in Chapter 7. That’s because of a screw-up by the U.S. Supreme Court in an early opinion under the Bankruptcy Code—the opinion is Dewsnup... Continue Reading →

Can You Be Held in Contempt for Obeying a Court Order? The U.S. Supreme Court Will Decide (Taggart v. Lorenzen)

By: Donald L. Swanson A Hypothetical: You’ve sued an individual in state court for injunctive and other relief. Your defendant then files bankruptcy and receives a Chapter 7 discharge. Then, you ask the state court to determine that you can proceed with the lawsuit, despite the bankruptcy discharge. The state court says you can, and so... Continue Reading →

Newly-Proposed Bankruptcy Legislation (“Small Business Reorganization Act”) Needs To Be Enacted ASAP

By: Donald L. Swanson New bankruptcy legislation to help small businesses and entrepreneurs, titled the “Small Business Reorganization Act (SBRA),” is wending its way through the U.S. Senate. This piece of legislation is long over-due and should be enacted with all due haste. Here are some reasons why. Mom & Pop Businesses Have the Same Bankruptcy... Continue Reading →

Federal Arbitration Act is Superseded by U.S. Constitution’s “Uniform Laws on . . . Bankruptcies” Clause

By: Donald L. Swanson “The Congress shall have Power To . . . establish . . . uniform Laws on the subject of Bankruptcies throughout the United States.” U.S. Constitution, Art. 1, Sec. 8 (emphasis added). Bankruptcy law is special, to begin with. There is no other area of law quite like it -- either legally... Continue Reading →

Congress Decided to Punish Consumer Debtors and Failed Entrepreneurs in BAPCPA — This is Terrible Policy!

By: Donald L. Swanson U.S. politicians love to talk about helping poor people—unless, that is, the poor owe money that can’t be repaid. U.S. politicians also love to talk about helping small businesses and entrepreneurs—unless, that is, the small business or entrepreneur owes money that can’t be repaid. When uncollectible debts are involved, politicians turn surly... Continue Reading →

Chapter 12 Debt Limit Should Be Eliminated

By: Donald L Swanson Chapter 12 of the Bankruptcy Code exists for the protection of family farms. However, Chapter 12 has, from the beginning, imposed a debt limit for eligibility [Fn. 1].  This debt limit needs to be eliminated.  Here’s why. Family Farms—Then and Now Back in 1986, at enactment of Chapter 12, the vast majority... Continue Reading →

“United States Bankruptcy Administration” — A 1970s Proposal With Scant Odds

By: Donald L Swanson Imagine a federal bankruptcy agency—like the Securities and Exchange Commission—called the “United States Bankruptcy Administration.” That’s exactly what was proposed by the report of the 1970s Bankruptcy Commission, which resulted in the Bankruptcy Code of 1978. The bankruptcy agency proposal was, in fact, “the most important innovation of the Commission’s report,” along... Continue Reading →

What Happens When Executory Contracts are Rejected? U.S. Supreme Court to Decide (Mission v. Tempnology)

By: Donald L. Swanson When an executory contract is rejected in bankruptcy, what happens to the rights of the other party under that contract: Are those rights vaporized? Do those rights continue as if nothing happened? or Are those rights affected in some other way? The U.S Supreme Court will tackle this question in the case... Continue Reading →

Sometimes Good Things CAN Happen in Bankruptcy for Student Loan Debts

By: Donald L Swanson Every now and then a good thing happens in bankruptcy. It’s not very often—but good things do happen. Here’s a story of one of those good things [Fn. 1]. Our Hero (the bankruptcy Debtor) is a 54 year old, single mother of two college-aged children. She is a self-employed professional in a... Continue Reading →

Blog at WordPress.com.

Up ↑

%d bloggers like this: