Category: Subchapter V

Litigating Legacy Debt: “Commercial Or Business Activities” for Subchapter V Eligibility? (In re Fama-Chiarizia)

A different kind of legacy? (Photo by Marilyn Swanson) By: Donald L Swanson “courts agree that . . . evaluating, asserting, pursuing, and defending litigation claims . . .  can satisfy Section 1182(1)(A)’s requirement of ‘commercial or business activities.’” In re Fama-Chiarizia, Case No. 21-42341, E.D.N.Y. Bankruptcy Court, issued 9/15/2023, Doc. 238, at 37. One of... Continue Reading →

1

Individual Subchapter V Debtor’s Liquidating Plan: Can Discharge Be Denied Under § 1141(d)(3)? (In re Lucido)

A liquid plan? (Photo by Marilyn Swanson) By: Donald L Swanson Here’s a Bankruptcy Court opinion addressing a no-discharge claim under § 1141(d)(3) against an individual debtor who proposes a liquidating Subchapter V plan:   RGW Construction, Inc. v. Lucido (In re Lucido), Adv. No. 21-4031, Northern California Bankruptcy Court (issued 9/13/2023, Doc. 113). The Issue... Continue Reading →

1

Subchapter V Debtor’s Exclusive Right To File A Plan: Not A Super-Power

No super-power here (Photo by Marilyn Swanson) By: Donald L Swanson Question  Once a Subchapter V debtor is removed from possession under § 1185(a), what happens next? The answer to this question seems to have evolved over the few years of Subchapter V’s existence: from a low-power position for debtor, early-on; to a high-power position for... Continue Reading →

1

Subchapter V Trustee’s Facilitation Role (Part 6)—DUTIES & INHERENT POWERS

Inherent power of ocean waves (Photo by Marilyn Swanson) By: Donald L Swanson “(b) Duties.—The [Subchapter V] trustee shall— . . . (7)facilitate the development of a consensual plan of reorganization.” From 11 U.S.C § 1183(b)(7)(emphasis added). Facilitation is, by statute, a duty of every Subchapter V trustee—something a Subchapter V trustee must do.  But the nature and boundaries of the facilitation... Continue Reading →

1

Subchapter V Trustee’s Facilitation Role (Part 5)—INVESTIGATION DUTIES

Facilitating investigation (Photo by Marilyn Swanson) By: Donald L Swanson “(b) Duties.—The [Subchapter V] trustee shall— . . . (7)facilitate the development of a consensual plan of reorganization.” From 11 U.S.C § 1183(b)(7)(emphasis added). Facilitation is, by statute, a duty of every Subchapter V trustee—something a Subchapter V trustee must do.  But the nature and boundaries of... Continue Reading →

1

Subchapter V Trustee’s Facilitation Role (Part 4)—A CITY OF DETROIT MODEL

Facilitating cultural preservation (Photo by Marilyn Swanson) “(b) Duties.—The [Subchapter V] trustee shall— . . . (7)facilitate the development of a consensual plan of reorganization.” From 11 U.S.C § 1183(b)(7)(emphasis added). Facilitation is, by statute, a duty of every Subchapter V trustee—something a Subchapter V trustee must do.  But the nature and boundaries of the facilitation... Continue Reading →

0

Subchapter V Trustee’s Facilitation Role (Part 2)—NOT MEDIATION  

Facilitating safety and relaxation (Photo by Marilyn Swanson) By: Donald L Swanson “(b) Duties.—The [Subchapter V] trustee shall— . . . (7)facilitate the development of a consensual plan of reorganization.” From 11 U.S.C § 1183(b)(7)(emphasis added). Facilitation is, by statute, a duty of every Subchapter V trustee—something a Subchapter V trustee must do.  But the nature and... Continue Reading →

0

Subchapter V Trustee’s Facilitation Role (Part 1)—NOT NEUTRAL

Facilitating fun: a primary duty (Photo by Marilyn Swanson) By: Donald L Swanson “(b) Duties.—The [Subchapter V] trustee shall— . . . (7)facilitate the development of a consensual plan of reorganization.” From 11 U.S.C § 1183(b)(7)(emphasis added). Facilitation is, by statute, a duty of every Subchapter V trustee—something a Subchapter V trustee must do.  But the nature... Continue Reading →

1

Beating The “Single Asset Real Estate” Exclusion From Subchapter V Eligibility (In re Evergreen)

A “single asset real estate”? (Photo by Marilyn Swanson) By: Donald L Swanson Excluded from Subchapter V eligibility is a “single asset real estate” debtor. We have a recent opinion on a Subchapter V debtor who beats that exclusion: In re Evergreen Site Holdings, Inc., [Fn. 1] What follows is a summary of that opinion. Eligibility... Continue Reading →

0

Trade-Off Theory: For Minimizing Debtor Benefits In Subchapter V

Trade-Off: Bait & Tackle v. Coffee & Deli (Photo by Marilyn Swanson) By: Donald L Swanson There is trade-off theory going around for construing Subchapter V statutes.  The theory is used to minimize benefits that Subchapter V statutes provide to debtors. The Theory The theory goes like this: elimination of the absolute priority rule is a... Continue Reading →

1

Blog at WordPress.com.

Up ↑