Plan Confirmation Standards Under Small Business Reorganization Act of 2019

By Donald L. Swanson The Small Business Reorganization Act of 2019 is said to provide a “Chapter 12-type” reorganization opportunity for small businesses within Chapter 11. That comparison is apt. Here’s why: Chapter 12 came into existence, back in 1986, because farmers had difficulty getting plans of reorganization confirmed under Chapter 11; The Small Business Act... Continue Reading →

A CRO-Type Advisory Role for Family Businesses in Financial Stress

By: Donald L Swanson When large businesses are in financial trouble, their banks commonly require them to hire a CRO (a Chief Restructuring Officer) as a condition for extending loans. The CRO can do a variety of things. But one of the essentials is an advisory role: --Evaluate the financial troubles and recommend a course of... Continue Reading →

Trustee’s Role Includes Financial Adviser & Mediation: Small Business Reorganization Act of 2019

By Donald L. Swanson The Small Business Reorganization Act of 2019 became law on August 23, 2019.  But the date it takes effect is "180 days" later: on February 19, 2020. This new law helps small business reorganize under Chapter 11 in much the same way that farmers reorganize under Chapter 12 and consumers reorganize under... Continue Reading →

When “Small” is Still Too Big: The Small Business Reorganization Act

By Donald L. Swanson The Small Business Reorganization Act is now law! The House of Representatives passed it on July 25, 2019; The Senate passed it on August 1, 2019; and The President signed it on August 23, 2019. This Act is much-needed and long overdue. It provides Chapter 12-type relief for small businesses within Chapter... Continue Reading →

ABI Webinar: Three New Bankruptcy Laws Explained

By: Donald L. Swanson Three bankruptcy bills recently navigated the political morass in Washington D.C. and became law on August 23, 2019.  The three new laws are: Small Business Reorganization Act of 2019 (H.R. 3311) Family Farmer Relief Act of 2019 (H.R. 2336) HAVEN Act (H.R. 2938). On August 29, 2019, the American Bankruptcy Institute ("ABI")... Continue Reading →

Financial Impairment On The Farm: What’s A Farmer To Do?

On July 30, 2019, Kristine Tidgren of Iowa State University and I presented a webinar for farmers titled, "Financial Impairment on the Farm." My portion of the webinar focuses on, "What's a farmer to do when the bank wants out?"  Kristine's portion focuses on related tax issues.  Here's a link to the webinar: Link:  YouTube audio... Continue Reading →

U.S. House of Representatives Passes Bi-Partisan Bankruptcy Bill — It’s True!

By Donald L. Swanson On July 25, 2019, the U.S. House of Representatives passes on voice vote H.R. 2336, which raises the debt limit for Chapter 12 eligibility from $4.4 million to $10 million.  And both parties voted, "Aye"! Who would've thunk it: bi-partisan action by a partisan political body, in today's political environment?! The subject... Continue Reading →

Estate Planning: A Frequently Used, But Rarely Successful, Defense Against Fraudulent Transfer Claims

By: Donald L. Swanson “Estate planning” is a frequently utilized, but rarely successful, defense against fraudulent transfer claims. Here’s why: estate planning strategies that make perfect sense when everyone is solvent become cloaked with “badges of fraud” amid insolvency, demonstrating “actual intent to hinder, delay or defraud creditors.” Estate planning to address financial defaults is usually... Continue Reading →

How Bankruptcy Reorganization is Good for Local Communities: aka, Why S. 897 & S. 1091 Need to be Enacted at Once

By: Donald L. Swanson Business reorganization in bankruptcy gets a bad rap. Here’s why: “bankruptcy” deals with failed promises to pay (if you google synonyms for “failure,” the first word to appear is “bankruptcy") and implies a moral shortfall in the minds of many. That’s unfortunate because business reorganization can be a good thing.  When utilized... Continue Reading →

Congress Needs to Help Family Businesses in Financial Stress — Not Punish Them!

By: Donald L. Swanson We live and work in a market economy, here in these United States. The market is our economic judge: it validates—or invalidates—business decisions, and it picks winners and losers. The market is an efficient, impartial and unbiased judge. But it is also cruel and unforgiving. The result is that many businesses succeed.... Continue Reading →

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