On Bankruptcy and Mediation
A Caucus? (photo by Marilyn Swanson) By: Donald L Swanson A study [fn. 1] of mediations in small claims cases reaches this conclusion: The over-use of a caucus format is bad for mediation. Findings Specific findings supporting such conclusion include the following.[Fn. 2] In a small claims mediation, a greater percentage of time spent in caucus:... Continue Reading →
Temporary (photo by Marilyn Swanson) By: Donald L Swanson Debtor’s Subchapter V Plan provides for: payment in full of all claims at the end of its three-years term, through a new loan to be guaranteed by Debtor’s insiders; and a temporary injunction, during the three-years term of the Plan, against creditors suing those same insiders on... Continue Reading →
Abuse? (Photo by Marilyn Swanson) By: Donald L Swanson Nobody likes bankruptcy. That’s a truism—and it’s true even though bankruptcy serves an essential role in our market-based and credit-based economy, in which the risk of failure is a constant companion for every business endeavor. But when the dislike of bankruptcy finds its way into judicial rulings... Continue Reading →
Things got out of hand here (photo by Marilyn Swanson) By: Donald L Swanson Sometimes, things get out of hand—starting with a small error that expands into something more. A recent example is the case of Gray v. United States, Case No. 24-CV-2621 in the U.S. District Court for Southern New York (Decided May 28, 2025).... Continue Reading →
Providing protection? (Photo by Marilyn Swanson) By: Donald L. Swanson Every now and then you see something and say, “How in the heck could this happen?!” Here is one of those times: In re Prehired LLC, Case No. 22-11007, Delaware Bankruptcy Court (decided May 30, 2025; Doc. 247). Facts Debtor LLC files a voluntary Subchapter... Continue Reading →
Repetition (photo by Marilyn Swanson) By: Donald L. Swanson Individuals who repeatedly file bankruptcy face an automatic stay problem under under 11 U.S.C. § 362(c). Subparts (c)(3)&(4) of § 362 terminate the automatic bankruptcy stay—automatically—for individual repeat-filers. Subpart (c)(3) deals with a first-time repeat-filer like this: “(3) if a single or joint case is filed by... Continue Reading →
By: Donald L Swanson Every now and then we get a picture of actions in mediation that result in sanctions. Studying such a picture can be helpful to us all—by illustrating the types of actions to be avoided. Here is one such picture from the legal opinion of Vittiglio v. Vittiglio, 297 Mic.App. 391, 824 N.W.2d... Continue Reading →
London Tower -- site of many public hangings (Photo by Marilyn Swanson) By: Donald L Swanson “Blackstone . . . observed that acts such as . . . robbery, certain thefts, fraudulent bankruptcy, forgery of coin, and forgery of a marriage license were felonies that could warrant death.” This quote is from United States v. Duarte,... Continue Reading →
Racing (photo by Marilyn Swanson) By: Donald L. Swanson Several months ago, I stumbled upon an old opinion out of the U.S. Supreme Court suggesting that the right of a creditor to race to the courthouse to collect on its claim against a debtor—and to win (or lose) that race—is a basic right of contract... Continue Reading →
A locomotive (photo by Marilyn Swanson) By: Donald L Swanson Here’s an interesting employment discrimination case that’s related to a prior bankruptcy: Palmer v. Union Pacific Railroad Co. (In re Palmer), Case No. 24-1212 (8th Cir., decided June 12, 2025).[Fn. 1] Background Debtor starts working for The Railroad in March 1998 as a Switchman/Brakeman, after disclosing... Continue Reading →
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