Eligibility For Chapter 9—Over Objections Of Mayor & City Council? (City Of Chester, PA)

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 →

How An Honest Debtor’s Discharge Is Denied—A Reversion to Punishment? (Bartenwerfer v. Buckley)

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 →

Denying Corporate Debtors A Discharge Under § 523(a)’s “Individual Debtor” Exceptions? (Avion Funding v. GFS)

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 →

First Two Bankruptcy Opinions From The U.S. Supreme Court (Reily v. Lamar & U.S. v. Fisher)?

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 →

Hard-Knocks Rule: Hiding True Reasons For A Position Can Backfire (In re Heaven’s Landing)

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 →

Bankruptcy Cases = 75% Of All Federal Court Filings? (A Study)

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 →

Waiver Of Tribal Sovereign Immunity In Bankruptcy? (At U.S. Supreme Court: Lac du Flambeau Band)

Tribal sovereignty (photo by Marilyn Swanson) By: Donald L Swanson On January 13, 2023, the U.S. Supreme Court grants the Petition for a writ of certiorari in Lac du Flambeau Band of Lake Superior Chippewa Indians v. Coughlin, Supreme Court Case No. 22-227, and on January 31, 2023, the Supreme Court enters this order therein: "Set... Continue Reading →

Third Circuit’s Choice Of Huge Disparities For Similarly Situated Claimants Is Inexplicable (Johnson & Johnson)

An inexplicable choice? (Photo by Marilyn Swanson) By: Donald L Swanson Johnson & Johnson (“J&J”) has, for a very long time, produced and sold a baby powder product containing talc—a mineral milled into fine powder that includes traces of asbestos. In recent years, that baby powder product has spawned a torrent of lawsuits alleging that it... Continue Reading →

When “Projected Disposable Income” Means “Actual Disposable Income”—And How U.S. Supreme Court Disagrees

Projected v. Actual (photo by Marilyn Swanson) By: Donald L Swanson The phrase “projected disposable income” is a plan confirmation standard in all reorganization chapters of the Bankruptcy Code for individuals and businesses: Chapter 11—in § 1129(a)(15); Subchapter V—in § 1191(c)(2);          Chapter 12—in § 1225(b)(1); and Chapter 13—in § 1325(b)(1). Inexplicably, three courts (two bankruptcy... Continue Reading →

“Grab What You Can Get, When You Can Get It”: A New Bankruptcy Law Of The Land (Siegel v. U.S. Trustee Program)

Grab what you can get? (photo by Marilyn Swanson) By: Donald L Swanson Remember the old saying, “Grab what you can get, when you can get it”? Well . . . that old saying is now the federal law of the land, applying exclusively to bankruptcy laws in Alabama and North Carolina.  Here’s how.  Congress imposed... Continue Reading →

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