Doctrinaire? (Photo by Marilyn Swanson) By: Donald L Swanson Doctrines of constitutional mootness and equitable mootness can prevent an appellate court from hearing an appeal. But what the meaning of those two doctrines might be is often a mystery. An opinion from the U.S. Third Circuit Court of Appeals addresses both mootness doctrines and clarifies what... Continue Reading →

Passing through? (Photo by Marilyn Swanson) By: Donald L Swanson Can a corporation’s pass-through taxes be counted as “reasonably necessary” expenses in computing the corporation’s “projected disposable income” in Subchapter V? The answer is, “Yes,” according to Leon Greenberg Professional Corp. v. A Cab, Series L.L.C. (In re A Cab, Series L.L.C.), Case No. 25-1205 (9th... Continue Reading →

Load limit? (Photo by Marilyn Swanson) By: Donald L Swanson Congressional action on raising the debt limit for Subchapter V eligibility back to $7.5 million (see this link) puts a new focus on the details of that eligibility issue and how the debt limit is computed. An opinion on the subject is The Reed Action Judgment... Continue Reading →

Fixing (photo by Marilyn Swanson) By: Donald L Swanson The opinion is In re Phil Kean Designs, Inc., Case No. 25-07667, Middle Florida Bankruptcy Court (decided June 29, 2026; Doc. 154). Creditors in this Subchapter V case object to the 3-year term of Debtor’s Plan and ask the Bankruptcy Court to fix a longer term. Creditors... Continue Reading →

Truing up? (Photo by Grant Showalter-Swanson) By: Donald L Swanson The opinion is In re Phil Kean Designs, Inc., Case No. 25-07667, Middle Florida Bankruptcy Court (decided June 29, 2026; Doc. 154). Subchapter V says that a plan must be fair and equitable, which requires devotion of debtor’s projected disposable income over the plan's term (§... Continue Reading →

Fixing the defects (Photo by Marilyn Swanson) By: Donald L Swanson Defaults on home mortgage loans are frequently cured under Chapter 13 plans. But what about defaulted home mortgages in Subchapter V?  Here is an opinion dealing with such question: In re Koetters, Case No. 25-80895, Central Illinois Bankruptcy Court (decided May 29, 2026; Doc. 95).... Continue Reading →

Getting paid for valuable services? (Photo by Marilyn Swanson) By: Donald L Swanson There is a hole in the Bankruptcy Code: a dispossessed Subchapter V debtor has the exclusive right and power to file a plan, but there is no specific provision for compensating the dispossessed debtor’s attorney for doing so. A way needs to be... Continue Reading →

Removed. Reinstatement possibilities? (photo by Marilyn Swanson) By: Donald L SwansonA problem: What is a Subchapter V trustee to do when the Subchapter V debtor is removed from possession? Authorizations The Bankruptcy Code authorizes removal of a debtor in possession for cause—in both Subchapter V and standard Chapter 11.[Fn. 1] And in a removed-debtor context, the Bankruptcy... Continue Reading →

Electing? (photo by Marilyn Swanson) By: Donald L Swanson Question: Can a bankruptcy court revoke a debtor’s Subchapter V election without debtor’s consent when debtor is statutorily eligible for Subchapter V relief? Two recent opinions on that question from a single bankruptcy case (In re USA Cricket, Case No. 25-16381, Colorado Bankruptcy Court) say, “Yes”: opinion... Continue Reading →