On Bankruptcy and Mediation
Self-Centered? (photo by Marilyn Swanson) By: Donald L Swanson A study on “egocentrism” and “misunderstanding in conflict and Negotiation” is enlightening. [Fn. 1] “Egocentrism” is defined as an “excessive interest in oneself . . . at the expense of or in disregard of others.” Study Findings The study finds, in three separate experiments, that negotiating parties,... Continue Reading →
A lack of uniformity? (photo by Marilyn Swanson) By: Donald L Swanson It’s time for a uniform law on the subject of assignment for benefit of creditors. Description Assignment for benefit of creditors laws are commonly known by the acrostic “ABC Laws”--for obvious reasons. Such laws are a tool for owners of a distressed business in... Continue Reading →
SUNSET (photo by Marilyn Swanson) By Donald L. Swanson The sun has set. Yes it has. The $7,500,000 eligibility limit for Subchapter V expired yesterday (March 28, 2022), without action by Congress to extend it. Actually, the Subchapter V sun was set to set on March 27—but that’s a Sunday. So let’s give the benefit of... Continue Reading →
The setting of the sun (photo by Marilyn Swanson) By Donald L. Swanson Here’s a vindication for the Small Business Administration’s discrimination against bankruptcy debtors: On March 16, 2022, the Second Circuit Court of Appeals reverses a Bankruptcy Court Order that prohibited the SBA from denying PPP funds to bankruptcy debtors. The opinion is Springfield Hospital,... Continue Reading →
Ignoring the issue? (photo by Marilyn Swanson) By: Donald L Swanson A Petition for certiorari is before the U.S. Supreme Court in Speech & Language Center, LLC, and Chryssoula Marinos-Arsenis v. Horizon Blue Cross Blue Shield of New Jersey (Case No. 21-1154, filed 2/16/2022). Petition’s Question The Question presented in the Petition is this: “Can parties... Continue Reading →
A Justice Breyer opinion at the U.S. Supreme Court -- Stern v. Marshall By Donald L. Swanson In a few months, Justice Stephen G. Breyer is set to retire from the U.S. Supreme Court. The bankruptcy world will miss him. The reason for discussing this subject now (instead of waiting for the retirement to actually happen)... Continue Reading →
Rainbow—a spectrum of light (photo by Marilyn Swanson) By: Donald L Swanson “The [Subchapter V] Trustee shall— . . . facilitate the development of a consensual plan of reorganization.” 11 U.S.C. § 1183(b)(7). Facilitation is a mediator-like tool that can be used by every bankruptcy trustee in every case. Conflicting Duties For Subchapter V trustees, however,... Continue Reading →
Unimpaired (photo by Marilyn Swanson) By Donald L. Swanson Claims are “impaired,” unless the plan “leaves” their rights “unaltered.” § 1124(1). This rule is not as simple and unequivocal as it seems, according to an In re Hertz opinion. [Fn. 1] Here’s why. Plan Treatment of Unsecured Claims Claims of unsecured creditors in the Hertz bankruptcy... Continue Reading →
Fed.R.Bankr.P. 9023 & Fed.R.Civ.P. 59 By: Donald L Swanson Imagine this: a U.S. District Court enters judgment in a case that’s “related to” a bankruptcy, and we want to file a motion for new trial or to amend the judgment. So, which deadline applies to the motion: 28 days under Fed.R.Civ.P. 59(e); or14 days under Fed.R.Bankr.P.... Continue Reading →
Sec. 1183(c) By: Donald L Swanson There is no doubt about this: after the consensual confirmation of a Subchapter V plan: the trustee’s role terminates upon “substantial consummation” (see § 1183(c)); and“substantial consummation” often occurs shortly after confirmation (see § 1101(2)). The early trustee termination is not merely a possibility, it’s mandatory upon substantial consummation... Continue Reading →
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