A Missing Piece in Subchapter V Eligibility & A Potential Work-Around

A missing piece? (Photo by Marilyn Swanson) By: Donald L Swanson One of the missing pieces in Subchapter V is this: it’s easier for a corporate business to meet the “engaged in commercial or business activities” standard for eligibility than it is for an individual owner/guarantor of that business. Here’s how one court describes the missing... Continue Reading →

Working Together: A Previously Successful Business’s General Counsel and Distressed-Debt Counsel

Working together? (photo by Grant Swanson) By: Donald L Swanson Answers to these two questions can get tricky: When should a previously successful business engage distress-debt counsel? What is the role of the business’s general counsel once that happens? Second Question: Role Here’s the answer to the second question first:  The business’s general counsel needs to... Continue Reading →

Student Loans Take Another Bankruptcy Hit: This Time On Subchapter V Eligibility (In re Reis)

A direct hit (photo by Marilyn Swanson) By: Donald L Swanson The hits keep coming for student loans in bankruptcy. This time the hit is this: student loans for attending medical school do not qualify as “commercial or business” loans for Subchapter V eligibility. The central finding, for a medical student who worked as an employee... Continue Reading →

How the “Engaged In” Standard For Subchapter V Eligibility Is Easily Satsified (In re Robinson)

Easily satisfied? (photo by Marilyn Swanson) By: Donald L Swanson Is a debtor “engaged in commercial or business activities” for Subchapter V eligibility? Such question has been addressed on many occasions and by many courts.  The trend seems to be toward a conclusion that the nature and quantity of “commercial or business activities” required for Subchapter... Continue Reading →

Subchapter V Plan Confirmation: Non-Voting & Classification (In re Creason)

Inactive (photo by Marilyn Swanson) By: Donald L Swanson What happens when a creditor class fails or refuses to vote on confirmation of a Subchapter V plan? Does that prevent a consensual confirmation? We have a recent answer from In re Creason, Case No. 22-00988, Western Michigan Bankruptcy Court (opinion issued 2/23/2023). Facts The Subchapter V... Continue Reading →

Denying Corporate Debtors A Discharge Under § 523(a)’s “Individual Debtor” Exceptions? (Avion Funding v. GFS)

Painting over? (Photo by Marilyn Swanson) By: Donald L Swanson Can a corporate debtor be denied a Subchapter V discharge under § 523(a), despite this § 523(a) language (emphasis added): “A discharge under section . . . 1192 [Subchapter V] . . . does not discharge an individual debtor from . . . ”? A recent... Continue Reading →

Two Subchapter V Plan Confirmation Standards: (i) Chapter 7 Liquidation, & (ii) Unfair Discrimination (In re Lapeer Aviation)

Two different standards? (Photo by Marilyn Swanson) By: Donald L Swanson Every now and then we get an example of how a process should work. That’s exactly what we have, regarding confirmation of a contested Subchapter V plan, in the case of In re Lapeer Aviation, Inc., Case No. 21-31500 in the Eastern Michigan Bankruptcy Court.... Continue Reading →

Fighting To Get Into Subchapter V (In re Ventura)

Persistence through adversity (photo by Marilyn Swanson) By: Donald L Swanson You’ve gotta admire the Debtor in In re Deirdre Ventura. Debtor has been fighting to save a Bed and Breakfast business through bankruptcy: beginning in 2018 with a regular Chapter 11, and then struggling to get into Subchapter V. Debtor's is a you-can’t-make-this-stuff-up story of... Continue Reading →

Bankruptcy Plan Term (3 to 5 Years) — A Comparison Of Statutes

11 U.S.C. § 1191(c)(2) By: Donald L Swanson Subchapter V of Chapter 11 authorizes a reorganization plan to have a term of three to five years.  Here is the precise language involved, in § 1191(c)(2)(A)&(B): “in the 3-year period, or such longer period not to exceed 5 years as the court may fix.” So . .... Continue Reading →

Facilitation Skills For Subchapter V Trustees

Webinar -- Promotional Notification By: Donald L Swanson What follows is a script (more or less) of my portion of a panel presentation in an webinar, presented on September 14, 2021, sponsored by the Mediation Committee of the American Bankruptcy Institute ("ABI"), titled "Facilitation Skills for Subchapter V Trustees." A video of the webinar appears at... Continue Reading →

Blog at WordPress.com.

Up ↑

%d bloggers like this: