On Bankruptcy and Mediation
Fixing (photo by Marilyn Swanson) By: Donald L Swanson The opinion is In re Phil Kean Designs, Inc., Case No. 25-07667, Middle Florida Bankruptcy Court (decided June 29, 2026; Doc. 154). Creditors in this Subchapter V case object to the 3-year term of Debtor’s Plan and ask the Bankruptcy Court to fix a longer term. Creditors... Continue Reading →
Truing up? (Photo by Grant Showalter-Swanson) By: Donald L Swanson The opinion is In re Phil Kean Designs, Inc., Case No. 25-07667, Middle Florida Bankruptcy Court (decided June 29, 2026; Doc. 154). Subchapter V says that a plan must be fair and equitable, which requires devotion of debtor’s projected disposable income over the plan's term (§... Continue Reading →
Meeting the standards? (Photo by Marilyn Swanson) By: Donald L Swanson What are the legal standards for dismissing a regular Chapter 11 or Subchapter V case for being filed in bad faith? This question is addressed in In re JPK Newco, LLC, Case No. 25-0200 in the District of Columbia Bankruptcy Court (decided June 12,... Continue Reading →
Fixing the defects (Photo by Marilyn Swanson) By: Donald L Swanson Defaults on home mortgage loans are frequently cured under Chapter 13 plans. But what about defaulted home mortgages in Subchapter V? Here is an opinion dealing with such question: In re Koetters, Case No. 25-80895, Central Illinois Bankruptcy Court (decided May 29, 2026; Doc. 95).... Continue Reading →
Getting paid for valuable services? (Photo by Marilyn Swanson) By: Donald L Swanson There is a hole in the Bankruptcy Code: a dispossessed Subchapter V debtor has the exclusive right and power to file a plan, but there is no specific provision for compensating the dispossessed debtor’s attorney for doing so. A way needs to be... Continue Reading →
Removed. Reinstatement possibilities? (photo by Marilyn Swanson) By: Donald L SwansonA problem: What is a Subchapter V trustee to do when the Subchapter V debtor is removed from possession? Authorizations The Bankruptcy Code authorizes removal of a debtor in possession for cause—in both Subchapter V and standard Chapter 11.[Fn. 1] And in a removed-debtor context, the Bankruptcy... Continue Reading →
Electing? (photo by Marilyn Swanson) By: Donald L Swanson Question: Can a bankruptcy court revoke a debtor’s Subchapter V election without debtor’s consent when debtor is statutorily eligible for Subchapter V relief? Two recent opinions on that question from a single bankruptcy case (In re USA Cricket, Case No. 25-16381, Colorado Bankruptcy Court) say, “Yes”: opinion... Continue Reading →
Engaged in commercial or business activities (photo by Marilyn Swanson) By: Donald L Swanson The Bankruptcy Court in In re Stevens, 667 B.R. 428 (Bankry. S.D.W. Va. 2025), addresses the question of Debtors’ eligibility for Subchapter V relief under the “engaged in commercial or business activities” standard. In doing so, the In re Stevens court compiles... Continue Reading →
First page of S. 3977 By: Donald L Swanson On March 3, 2026, six Senators (three from each party) introduced S. 3977, titled the “Bankruptcy Threshold Adjustment Act of 2026.” The six senators are Chuck Grassley (R-IA), Richard Durbin (D-IL), John Conyn (R-TX), Sheldon Whitehouse (D-RI), Lindsey Graham (R-SC), and Christopher Coons (D-DE). Here is a... Continue Reading →
A Committee? (photo by Marilyn Swanson) By: Donald L Swanson Should an official creditors committee be appointed in a Subchapter V case? That’s the question in In re Cinemex Holdings USA, Inc., Case No. 25-17559, Southern Florida Bankruptcy Court (decided August 28, 2025; Doc. 191). The In re Cinemex Court denies a motion to appoint a... Continue Reading →
