On Bankruptcy and Mediation
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 →
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 →
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 →
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 →
Not eligible for roaming the prairie (photo by Marilyn Swanson) By: Donald L Swanson QUIZ – Multiple Choice Question Question: Where is this bankruptcy eligibility language found: “aggregate noncontingent liquidated secured and unsecured debts as of the date of the filing of the petition or the date of the order for relief in an amount not... Continue Reading →
Co-existing, side-by-side (photo by Marilyn Swanson) By: Donald L Swanson A little-known effect of the enactment of Subchapter V is this: Prior “small business debtor” rules now co-exist, side-by-side, with (and separately from) Subchapter V rules in Chapter 11; andWe have two separate-but-similar systems for small business debtors. A Chronology Consider this chronology of changes that... Continue Reading →
By: Donald L Swanson So . . . the second, bi-partisan pandemic bill has made its way through both houses of Congress. It has been approved by politicians in both parties. It is signed by the President and is now law. Here is a link to the text of the bi-partisan law. It’s called the "Coronavirus... Continue Reading →
An early end By: Donald L Swanson “The term of a Subchapter V plan can be less than three years, based upon the language of the statute!” --A Bankruptcy Judge's comment at a bankruptcy conference in December 2019 (as I recall it). Upon hearing that comment, I went scrambling to find the statutory language. And here... Continue Reading →
Bad form: Angus cattle on a road at dusk! (Photo by Marilyn Swanson) By: Donald L Swanson The opinion is dated November 9, 2020, and appears in the jointly administered cases of In re Nilhan Developers, LLC, Case No. 15-58443 (Northern Georgia Bankruptcy Court) (Doc. 206), and In re Bay Circle Properties, LLC, Case No. 15-58440... Continue Reading →
By: Donald L Swanson Subchapter V trustee compensation is based on an hourly fee. Unlike compensation for a Chapter 7, Chapter 12 or Chapter 13 trustee, a Subchapter V trustee’s compensation has nothing to do with the amount of funds disbursed. That’s the conclusion of a Bankruptcy Court opinion: In re Tri-State Roofing, Case No. 20-40188,... Continue Reading →
