On Bankruptcy and Mediation
Overriding? (Photo by Marilyn Swanson) By: Donald L Swanson This new bankruptcy opinion denies a creditor’s Motion to compel arbitration: Samson v. The LCF Group, Inc. (In re Bridger Steele, Inc.), Adv. No. 2:24-ap-2003 in Montana Bankruptcy Court (decided September 30, 2024; Doc. 10). What follows is a summary of that opinion’s arbitration-denial analysis. Background The... Continue Reading →
Running away! (Photo by Marilyn Swanson) By: Donald L Swanson The opinion is Samson v. The LCF Group, Inc. (In re Bridger Steele, Inc.), Adv. No. 2:24-ap-2003 in the Montana Bankruptcy Court (decided September 30, 2024; Doc. 10). Background Debtor is a fabricator and seller of metal roofing and siding products. Debtor files its voluntary Chapter... Continue Reading →
Where diverse parties intersect (photo by Marilyn Swanson) By: Donald L Swanson A receiver is appointed to recommend, for the appointing court’s determination, whether to put the defendant into a voluntary bankruptcy proceeding. I don’t remember ever seeing such a thing before! The opinion is City National Bank of Florida v. Louisiana Apple, LLC, Case No.... Continue Reading →
Which to choose? (Photo by Marilyn Swanson) By: Donald L Swanson Chapter 12 is for farmers. Subchapter V is for main street businesses. But in many circumstances, a farmer could be eligible for relief under both Chapter 12 and Subchapter V. In such circumstances, the question is this: Which should the farmer choose—Chapter 12 or Subchapter... Continue Reading →
Is this “absurd”? No. (Photo by Marilyn Swanson) By: Donald L Swanson What does “projected disposable income” mean as a statutory standard for plan confirmation? U.S. Supreme Court—It means what it says In Hamilton v. Lanning, 560 U.S. 505 (2010), the U.S. Supreme Court applies the term, “projected disposable income,” in a Chapter 13 plan confirmation... Continue Reading →
Consolidation? (photo by Marilyn Swanson) By: Donald L Swanson Substantive consolidation of affiliated debtors is an extraordinary remedy that should be exercised with caution. And legal standards governing substantive consolidation should focus on the effects of consolidation on the creditors of each affiliated debtor. A new opinion illustrates the substantive consolidation remedy and its application. The... Continue Reading →
A poison-pill? (Photo by Marily Swanson) By: Donald L Swanson The common law of assignments for benefit of creditors (“ABC”) has been around for centuries. ABC is a business debtor’s voluntary liquidation tool—typically utilized in cooperation with a major secured creditor. Historically, ABCs are attractive to debtors and creditors alike as an efficient, mostly out-of-court tool... Continue Reading →
A homestead (photo by Marilyn Swanson) By: Donald L Swanson Does a Chapter 7 debtor have appellate standing to protect the homestead exemption? That’s an issue addressed (sort of) in Karamoussayan v Massachusetts Department of Revenue (In re Karamoussayan), Case No. 22-041, First Circuit Bankruptcy Appellate Panel (decided April 11, 2024). Chronology Here’s a chronology. September... Continue Reading →
By the skin of its teeth (Photo by Marilyn Swanson) By: Donald L Swanson The statute for filing an involuntary bankruptcy (§ 303(b)) sets a high bar for petitioner eligibility. Specifically, a creditor cannot qualify as a petitioner under § 303(b), if any portion of that creditor’s claim is subject to a bona fide dispute. Here... Continue Reading →
Show horses? (photo by Grant Swanson) By: Donald L Swanson The opinion out of the U.S. Eleventh Circuit Court of Appeals is OHI Asset (VA) Martinsville SNF, LLC v. Wagner (In re Wagner), Case No. 22-13642 (decided September 11, 2024). The ultimate issue in Wagner is this: Should an individual Debtor be denied a discharge under... Continue Reading →
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