Moving Old Chapter 11 Cases Into Subchapter V? Bankruptcy Courts Say, “Yes”

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 →

April 9, 2020 0

CARES Act & Bankruptcy: Congress Wants the Largest of Small Businesses to Liquidate

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 →

April 2, 2020 0

Punishing Honest Debtors: The Travesty of BAPCPA

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 →

March 26, 2020 0

How An Official Committee Member Breaches Fiduciary Duties–And Pays A Price

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 →

March 24, 2020 0

Triage and Prescriptions for Ailing Businesses

Their ability to hunker down and survive is dependent, first and foremost, on the continuing availability of cash.

March 19, 2020 0

The Coming Corona Recession: Five Recommendations to Businesses for Getting Help

Economic fallout from the corona virus will leave many formerly-successful businesses in financial stress.

March 17, 2020 2

Memo to Federal Judges: Resist Temptation (Rodriguez v. FDIC)

There is “no federal general common law.”

March 12, 2020 0

The Solvent Debtor and Post-Petition Interest on Unsecured Claims

The Fifth Circuit follows what it describes as “the monolithic mountain of authority” in holding that the Bankruptcy Code—not the reorganization plan—defines the limits of claims.

March 5, 2020 1

Wet Ink and Paper Retention Requirements are Flawed: Technology Can Fix That

Wet ink and paper retention requirements are a flawed relic of manual systems past. It’s time to move this relic into the highly-secure digital world.