On Bankruptcy and Mediation
Getting through the impediment (Photo by Marilyn Swanson) By: Donald L Swanson Question: Can a creditor prevent its debtor from filing bankruptcy by pre-petition contract terms? Answer: No . . . according to In re Roberson Cartridge Co., LLC, Case No. 22-20192 in the Northern Texas Bankruptcy Court (03/07/2023, opinion at Doc. 77). Facts The In... Continue Reading →
Inactive (photo by Marilyn Swanson) By: Donald L Swanson What happens when a creditor class fails or refuses to vote on confirmation of a Subchapter V plan? Does that prevent a consensual confirmation? We have a recent answer from In re Creason, Case No. 22-00988, Western Michigan Bankruptcy Court (opinion issued 2/23/2023). Facts The Subchapter V... Continue Reading →
Hypothetical? — Chihuly (photo by Marilyn Swanson) By: Donald L. Swanson Say what?!. “Hypothetical jurisdiction” for a bankruptcy appeal?! Who knew? I sure didn’t. But it is, apparently, a thing . . . and it may even be real. At U.S. Supreme Court A newly filed Petition in the U.S. Supreme Court is Waleski v. Montgomery,... Continue Reading →
By: Donald L. Swanson “Creative destruction” occurs when something new kills off whatever existed before it. IPhone Example Just think, for example, of all the creative destruction that the iPhone has wrought! It has destroyed businesses that provided telephones and phone books, cameras and film, audio recordings and players, newspapers and newsstands, and related services. Businesses... Continue Reading →
An old homestead, built in 1751, near Chester, PA (photo by Marilyn Swanson) By: Donald L Swanson City of Chester is the oldest city in Pennsylvania, incorporated as a borough in 1701 and as a city in 1866, and is located on the Delaware River between Philadelphia and Wilmington. Unfortunately, the City is also in Chapter... Continue Reading →
Honest and unfortunate (photo by Marilyn Swanson) By: Donald L Swanson The U.S. Supreme Court does not like bankruptcy benefits for individual debtors. It really doesn’t. An example from a couple years ago is Fulton v. City of Chicago, where the U.S. Supreme Court finds a way to declare: an impound lot refusing debtor’s demand to... Continue Reading →
Painting over? (Photo by Marilyn Swanson) By: Donald L Swanson Can a corporate debtor be denied a Subchapter V discharge under § 523(a), despite this § 523(a) language (emphasis added): “A discharge under section . . . 1192 [Subchapter V] . . . does not discharge an individual debtor from . . . ”? A recent... Continue Reading →
The first of its kind? (photo by Marilyn Swanson) By: Donald L Swanson The U.S. Supreme Court issues its first-ever opinion—of any type—on August 3, 1791. [Fn. 1] But it does not address a bankruptcy question for quite some time thereafter. In fact, the first U.S. law on the subject of bankruptcy did not exist until... Continue Reading →
This did not end well (photo by Marilyn Swanson) By: Donald L Swanson Here’s a hard-knocks rule: When you can’t or won’t explain the true reason for taking a position in negotiations or litigation, distrust and suspicion of the worst-possible motives will follow. An Exhibit A for this rule is an opinion issued February 9, 2023,... Continue Reading →
Three out of four? By: Donald L Swanson “Consistently, the highest percentage of filings in the federal docket is bankruptcy cases, which can be up to 75% of filings.” That’s a conclusion by the authors of a 2014 study.[Fn. 1] Bankruptcy-Specific Here are bankruptcy-specific details and explanations from that same study: The number of bankruptcy cases... Continue Reading →
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