Does § 1409(b) Require Filing A Preference Claim For <$25,000 In Defendant's Home District?

There’s no place like home (photo by Marilyn Swanson) By: Donald L Swanson Debtor files Chapter 7 in the Eastern New York Bankruptcy Court. The Chapter 7 Trustee sues Defendant in that same Bankruptcy Court to recover an $11,408.55 preference.  Defendant resides in California, not New York, and is not an insider.  So, Defendant contends that... Continue Reading →

Hellenic Union of Mediators — Doing Excellent Work!

"Welcome to the website of the HELLENIC UNION OF MEDIATORS" (translation of first line in this photo) By: Donald L Swanson There are many people, around the world, doing excellent work in promoting the use of mediation as a dispute resolution tool. One such organization is the Hellenic Union of Mediators, located in Athens, Greece (the... Continue Reading →

A Subchapter V Plan Needs To Be A First Day Filing (In re Online King)

A first day? (photo by Marilyn Swanson) By: Donald L Swanson Here is a Hard-Knocks Rule (i.e., a lesson I’ve learned the hard way): A plan of reorganization needs to be a first-day filing—or as close to that as possible. This lesson first imposed itself upon me three decades ago.  I’m representing a Chapter 11 debtor,... Continue Reading →

Case Evaluation: An Effective ADR Process Under Michigan Law (Alemarah v. General Motors)

A Michigan rule of civil procedure By: Donald L. Swanson Mediation is the most commonly utilized, and a highly effective, method of alternative dispute resolution (“ADR”). “Case evaluation” is another ADR process.  We don’t hear about it as much—but it is also effective. The State of Michigan has formalized a “case evaluation” process in its state... Continue Reading →

May A Subchapter V Trustee Utilize (And Be Compensated For) Services Of An In-House Paralegal?

11 U.S.C. Sec. 330(a)(1)(a) By: Donald L Swanson Question: May a Subchapter V trustee utilize the services of a paralegal employed by the trustee’s law firm: without a separate application for approval of the paralegal’s employment; andwith the paralegal’s services being compensated as part of the Subchapter V trustee's fee application under § 330(a)(1)? Answer: The... Continue Reading →

Practicalities of Mediating Via Zoom

By: Donald L Swanson What follows is a script (more or less) of a panel presentation I gave on December 11, 2020, in a webinar sponsored by the American Bar Association. A revised version is published in Businesslawtoday.org by the American Bar Association at this link. Practicalities for conducting a mediation session by Zoom (or similar... Continue Reading →

City of Chicago v. Fulton: What the Supreme Court DID NOT Decide

City of Chicago (Photo by Marilyn a Swanson) By: Donald L Swanson The new U.S. Supreme Court’s bankruptcy opinion is City of Chicago, Illinois v. Fulton, et al., Case No. 19-357, issued January 14, 2021. Facts and Ruling Here’s how the Supreme Court summarizes the facts of the case and its ruling. In the case before... Continue Reading →

Mediation: Persisting Despite Early Failures (Kellogg v. Progressive)

Persisting through early failures (photo by Marilyn Swanson) By: Donald L. Swanson “Failure” in a mediation is difficult to define.  For hypothetical examples: Is it a “failure” when a lawsuit fails to settle in a mediation session?Is it a “failure” when a lawsuit fails to settle in a second mediation session?Is it a “failure” when, (i)... Continue Reading →

Subchapter V Trustee Should Not Be A Debtor’s Disbursing Agent

By: Donald L Swanson Question:  Should a Subchapter V trustee be receiving and disbursing the debtor’s payments to creditors? Answer:  No—absent highly unusual circumstances. Rationale Here are the reasons for the negative answer. --First A Subchapter V trustee’s compensation is based on hourly services rendered—not on a percentage of money the trustee handles.  See this linked... Continue Reading →

Bankruptcy Code Meets Federal Arbitration Act — At U.S. Supreme Court? (GE v. Belton)

Uniformity (photo by Marilyn Swanson) By: Donald L Swanson Uh-oh!  The U.S. Supreme Court is requiring action on a certiorari petition that presents a Bankruptcy Code meets Federal Arbitration Act (“FAA”) question. Here is what’s happened: November 10, 2014:  SDNY Bankruptcy Judge, Hon. Robert D. Drain, refuses to allow arbitration of a Debtor’s request to hold... Continue Reading →

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