As discussed in prior posts and articles (here, here and here), in 2019 Congress passed the Small Business Reorganization Act creating new Subchapter V of Chapter 11 of the Bankruptcy Code. The purpose of Subchapter V was to make small business bankruptcies faster and less expensive. However, the substantial benefits of Subchapter
James Bailey has experience with both debtor and creditor representation in bankruptcy, out-of-court workouts and restructurings, and bankruptcy-related litigation. He also regularly represents commercial lenders and mortgage servicers in federal court commercial litigation.
Certain “Nunc Pro Tunc” Relief May Still be Available in Bankruptcy
Translating to “now for then,” nunc pro tunc orders grant backdated relief. Such orders are common in bankruptcy cases. For instance, bankruptcy courts often enter orders retroactively approving retention of professionals, and in certain cases even granting retroactive relief from the automatic stay.
In February 2020, the Supreme Court held in Roman Catholic Archdiocese of …
Individual Employs New Small Business Bankruptcy Law to Modify Mortgage
Small businesses often struggle to reorganize in bankruptcy. To address this issue, Congress passed the Small Business Reorganization Act of 2019 (the SBRA). The SBRA took effect in February 2020 and makes small business bankruptcies faster and less expensive.
The recent case of In re Ventura, 2020 WL 1867898 (E.D.N.Y. Apr. 10, 2020) addresses…
Congress’ Third Major Coronavirus Legislation Makes Bankruptcy Relief for Potential and Current Individual Debtors Easier
On Friday March 27, 2020, President Trump signed into law the third major piece of coronavirus-related legislation in the last several weeks – the Coronavirus Aid, Relief, and Economic Security Act (CARES). The new law contains several amendments to the Bankruptcy Code. One of these amendments increases the maximum indebtedness for a “small business debtor”…
First Circuit Holds that Parents’ Tuition Payments for Adult Children Are Fraudulent Transfers
Recently, the First Circuit held that a parent’s tuition payments on behalf of an adult child do not benefit the parent’s bankruptcy estate, and a Chapter 7 trustee may therefore claw the payments back as fraudulent transfers.
The concept underlying fraudulent transfer law is that, if a person cannot pay his debts in due course,…
The Small Business Reorganization Act – A New Subchapter for Small Businesses
Since the 2005 amendments to the Bankruptcy Code, small business debtors have continued to struggle to reorganize effectively under Chapter 11 of the Bankruptcy Code. On Friday, August 23, 2019, President Trump signed the Small Business Reorganization Act of 2019 into law in an effort to address some of these issues.
The act aims to…
Judicial Estoppel Defense in Bankruptcy Claims Likely to Get More Difficult
A recent decision from the Court of Appeals for the Eleventh Circuit has impaired a valuable defense for early dismissal or settlement with bankrupt plaintiffs. This decision will affect strategy for mortgage originators, servicers, and other financial services companies that face a high volume of claims from bankrupt consumers.
On September 18, 2017, the Eleventh…