Chapter 11 business reorganization filings in the Pacific Northwest continued on a downward trend during the second quarter of 2014, according to statistics published by the U.S. Bankruptcy Courts. Filings in Oregon, Washington, and Idaho for the six months that ended June 30, 2014, totaled 86, with 53 of those filings in the Western District of… Continue reading Pacific Northwest Chapter 11 Business Reorganization Filings Continue on Downward Trend
In a recent decision, LGI Energy Solutions, Inc. v. Stoebner, 2014 US App LEXIS 5227 (8th Cir Mar 20, 2014), the United States Court of Appeals for the Eighth Circuit held that, in a three-party relationship in which a debtor’s otherwise preferential transfers to a third-party benefit the debtor’s primary creditor, new value coming from… Continue reading Eighth Circuit Upholds Availability of “New Value” Defense in Three-Party Creditor Relationships
In a recent 9-0 opinion, Law v. Siegel, 571 U.S. ___ (March 4, 2014), the U.S. Supreme Court held that a bankruptcy court has no equitable authority to override statutory protections, reversing a Ninth Circuit decision allowing a bankruptcy trustee to surcharge a debtor’s exempt property to reimburse the trustee for fees incurred as a… Continue reading Supreme Court Holds Statutory Exemption Language Inviolable
A chapter 7 bankruptcy trustee recently sought permission to sell a piece of real property, free and clear of liens and interests under 11 USC § 363(f). The proposed sale price was far less than the amount of the liens against the property, but the lienholder received notice of the proposed sale and did not file… Continue reading In a Section 363 Sale, a Lienholder’s Silence is Not Consent
In disclosing your firm’s connections with the debtor and its creditors when applying for employment under §327, how far do your disclosures go? Do you merely provide a list of those creditors your firm represents, or has represented, with little additional information? If you only provide the names of the creditors and a general statement… Continue reading Rethinking Rule 2014: Are Your Disclosures Adequate?
Summary: On December 6, 2013, the court in In re Cunae, United States Bankruptcy Court for the Southern District of Texas, Case No. 12037424, denied the US Trustee’s motion to dismiss a Chapter 7 petition under §707(b) for substantial abuse on the basis that the debtor’s debts were primarily consumer debts. The debts at issue… Continue reading Texas Bankruptcy Court Rules that Student Loans Qualify as Business Debts for Chapter 7 Eligibility Purposes
Summary: Two recent decisions from courts in the Ninth Circuit reinforce the importance of proper service where a party’s substantive rights may be affected. In an unpublished opinion of the Bankruptcy Appellate Panel in Bank of America v. LSSR, LLC, _________ (May 29, 2013), the panel affirmed a decision by the bankruptcy court to deny… Continue reading Service Requirements Are Strictly Enforced by Ninth Circuit Courts