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 →

Did Congress Intend Greater Subchapter V Protection To Corporations Than To Individuals? (In re Vertical Mac)

Protecting (photo by Marilyn Swanson) By: Donald L Swanson Did Congress intend that Subchapter V provide greater bankruptcy protection to corporations than to individuals? The answer is, “Yes,” according to a recent line of opinions: it’s easier for a corporation to be “engaged in business or commercial activities” than it is for the corporation’s owners; andthe... Continue Reading →

Ninth Circuit BAP Opinion In Subchapter V Case: On Authority To Sign Petition (In re SSRE Holdings)

He had authority to act (photo by Marilyn Swanson) By: Donald L Swanson We are starting to get appellate opinions on Subchapter V cases and issues.  Here is one of the earliest: In re SSRE Holdings, LLC, Case No. CC-21-1027, Ninth Circuit BAP (issued August 26, 2021, “Not for Publication”). The issue in SSRE Holdings is... Continue Reading →

Gambling in Bankruptcy (In re Robinson)

A casino (photo by Marilyn Swanson) By: Donald L Swanson The opinion is In re Robinson, Case No. 20-11471, Kansas Bankruptcy Court (issued August 20, 2021, Doc. 72). The issue involves gambling by the Debtor while in a Subchapter V bankruptcy case. The U.S. Trustee moves to dismiss Debtor’s Subchapter V case for “gross mismanagement,” because... Continue Reading →

Subchapter V Trustee As “De Facto Mediator” (In re 218 Jackson)

De facto end of the harbor? (photo by Marilyn Swanson) By: Donald L Swanson A Subchapter V trustee “acts more like a mediator than an adversary”; and A “substantial part of the Subchapter V trustee’s pre-confirmation role” is to “serve as a de facto mediator between the debtor and its creditors.”  --From In re 218 Jackson... Continue Reading →

Projected Disposable Income: An Old-And-Bad Ruling From Eighth Circuit

  Old and bad (photo by Marilyn Swanson) By: Donald L Swanson “Projected disposable income” is a plan confirmation provision appearing in all reorganization chapters of the Bankruptcy Code: in § 1129(a)(15) for Chapter 11;in § 1191(c)(2) for Subchapter V;         in § 1225(b)(1) for Chapter 12; andin § 1325(b)(1) for Chapter 13. Here’s an example of... Continue Reading →

Applying Pre-Petition Retainer To Pre-Petition Fees After Bankruptcy Filing: Subchapter V (In re Ozcelebi)

Don’t sleep on your rights (photo by Marilyn Swanson) By: Donald L Swanson Ooops!  Debtor’s counsel fails to apply its pre-petition retainer to its pre-petition fee before filing Debtor’s Subchapter V Petition. The result is a reduced fee claim (to a $9,999 amount, as authorized by § 1195) and a fight over the post-petition application of... Continue Reading →

An Example Of Subchapter V Accomplishing Its Purpose (In re Chip’s)

A special purpose: gas mask for a WWI horse By: Donald L Swanson It’s great to see a bankruptcy process that works—i.e., where both the debtor and its creditors are on board with a course of bankruptcy action. An excellent and recent example of such a thing involves a PPP loan, in which Debtor: dismisses its... Continue Reading →

Historical Prejudices Against Formerly-Successful Entrepreneurs Remain (In re Offer Space)

A link to the past (photo by Marilyn Swanson) By: Donald L Swanson Formerly-successful entrepreneurs have always been treated harshly in these United States. That may be hard to believe, given our market and credit economy and the importance of small businesses to it.  But it’s true. And prejudices against formerly-successful entrepreneurs remain in today’s bankruptcy statutes.... Continue Reading →

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