On Bankruptcy and Mediation
Before the sun sets (photo by Marilyn Swanson) By: Donald L. Swanson On July 31, 2025, Senators Grassley (R) and Durbin (D) introduce in the U.S. Senate an amendment (S.A.3382) to the “National Defense Authorization Act for Fiscal Year 2026” (S.2296). Said amendment proposes to reinstate the debt limit for Subchapter V eligibility at $7,500,000,... Continue Reading →
The better way (photo by Marilyn Swanson) By: Donald L Swanson Bankruptcy may not be very good at a lot of things. But one thing bankruptcy is good at is this: selling assets. Bankruptcy sales outside the ordinary course of business traditionally perform well at achieving top dollar. Two separate procedures are authorized for sales of... Continue Reading →
Temporary (photo by Marilyn Swanson) By: Donald L Swanson Debtor’s Subchapter V Plan provides for: payment in full of all claims at the end of its three-years term, through a new loan to be guaranteed by Debtor’s insiders; and a temporary injunction, during the three-years term of the Plan, against creditors suing those same insiders on... Continue Reading →
“commercial or business activities”? (Photo by Marilyn Swanson) By: Donald L Swanson “We now hold that a not-for-profit company can be ‘engaged in commercial or business activities’ as that phrase is used" in Subchapter V of the Bankruptcy Code. Guan v. Ellingsworth Residential Community Association, Inc., 125 F.4th 1365 (11th Cir. 2025). Guan is a homeowner... Continue Reading →
Corporations doing business here (photo by Marilyn Swanson) By: Donald L Swanson “[T]his Court finds that the exceptions to discharge under §523(a) only apply to individuals in Subchapter V.” Spring, et al. v. Davidson and Blok Industries, Inc. (In re Davidson; In re Blok Industries, Inc.; Jointly Administered), Adv. No. 23-3005, Doc. 87, at 15 (Bankr.,... Continue Reading →
A path (photo by Marilyn Swanson) By: Donald L Swanson A recent Bankruptcy Court opinion grants an involuntary Debtor’s motion to convert its Chapter 7 case to Subchapter V—relying on a U.S. Supreme Court opinion. This Bankruptcy Court opinion provides a path for others to follow. The opinion is In re Zarifian Enterprises LLC, Case No.... Continue Reading →
Which to choose? (Photo by Marilyn Swanson) By: Donald L Swanson Chapter 12 is for farmers. Subchapter V is for main street businesses. But in many circumstances, a farmer could be eligible for relief under both Chapter 12 and Subchapter V. In such circumstances, the question is this: Which should the farmer choose—Chapter 12 or Subchapter... Continue Reading →
What is he supposed to be doing? (Photo by Marilyn Swanson) By: Donald L Swanson Here’s a Subchapter V dilemma: I’m Trustee in a Subchapter V case, in which Debtor’s plan is confirmed non-consensually (i.e., under § 1191(b)), with plan payments being made by Debtor to creditors; the fact of my presence in the case as... Continue Reading →
By: Donald L Swanson “A discharge under section 727, 1141, 1192 [Subchapter V], 1228(a), 1228(b), or 1328(b) of this title does not discharge an individual debtor from any debt— . . .” 11 U.S.C. § 523(a) (emphasis added). Bankruptcy courts applying the foregoing language in the early days of Subchapter V found such language to be clear and... Continue Reading →
Can it be fixed? (Photo by Marilyn Swanson) By: Donald L Swanson 11 U.S.C. § 1191(c)(2) provides (emphasis added): “(c) . . . the condition that a plan be fair and equitable . . . includes . . . (2) . . . all of the projected disposable income of the debtor to be received in... Continue Reading →
MEDIATBANKRY 