Subchapter V: Eligibility And Mortgage Impairment For A Residence/Bed & Breakfast (In re Ventura)

A Bed & Breakfast (photo by Marilyn Swanson) By: Donald L Swanson Chapter 11 Debtor owns her home and uses it as a Bed & Breakfast. The mortgage on Debtor's B&B/residence is her primary debt. This raises Subchapter V issues like: Eligibility—is her primary debt a consumer debt or a business debt?Eligibility—is her bankruptcy a "single... Continue Reading →

Mediation — And the Role of the Small Business Trustee

By: Donald L Swanson “Those with business, managerial, consulting, mediation and operational experience are encouraged to apply.” --From “Solicitation” by U.S. Trustee for Applicants to Serve as Subchapter V Trustees (emphasis added) Back in August of this year, the Small Business Reorganization Act of 2019 became law. It’s effective date is 180 days later—February 19, 2020.... Continue Reading →

Small Business Reorganization Act: A Great Law With A Major Flaw

By: Donald L Swanson The Small Business Reorganization Act of 2019 has the following discharge provisions: Plan confirmation “discharges the debtor from” specified debts (see § 1181(c), § 1192 & § 1141(d)(1)(A)); but The discharge takes effect only “after completion” of “all payments due within” the 3 to 5 years term of the plan (§ 1192).... Continue Reading →

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 →

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 →

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