Most bankruptcy courts have altered their practices and procedures in light of COVID-19. Below is a summary of the changes to practices and procedures in the United States Bankruptcy Courts for the Southern District of New...more
Most bankruptcy courts have altered their practices and procedures in light of COVID-19. Below is a summary of the changes to practices and procedures in the United States Bankruptcy Courts for the Southern District of New...more
Debtors in chapter 11 cases are required to make quarterly payments to the United States Trustee’s Office. These fees support the UST Program that serves in all districts but those in two states. Quarterly fees must be paid...more
An appeal from a bankruptcy court’s final judgment must be filed within 14 days of when an appealable order is entered on the docket. Parties should not delay past the 14 days even if, for instance, the bankruptcy court must...more
When a debtor files for bankruptcy, the Bankruptcy Code provides for an automatic stay of almost all proceedings to recover property from the debtor. See 11 U.S.C. § 362(a). A party in interest can seek an order exempting...more
1/27/2020
/ Appeals ,
Automatic Stay ,
Bankruptcy Code ,
Bankruptcy Court ,
Creditors ,
Debtors ,
Federal Rules of Bankruptcy Procedure ,
Motion for Relief from Automatic Stay ,
Reaffirmation ,
Right To Appeal ,
Ritzen Group Inc v Jackson Masonry LLC ,
SCOTUS ,
Time-Barred Claims
The U.S. Bankruptcy Code allows debtors to stay in control of their businesses in chapter 11. But the Code also empowers bankruptcy judges to replace a debtor’s management in certain circumstances with an outside trustee....more
Section 303 of the Bankruptcy Code allows creditors to initiate an involuntary bankruptcy case against a debtor. The petition initiating the case must be filed by creditors holding claims aggregating to at least $10,000, and...more
A recent decision in Delaware discussed the Barton doctrine and the application of the automatic stay in chapter 15 cases. McKillen v. Wallace (In re Ir. Bank Resolution Corp.), No. 18-1797, 2019 U.S. Dist. LEXIS 166153 (D....more
The Bankruptcy Code gives a trustee powers to avoid certain pre-bankruptcy transfers of the debtor’s property to other entities. For example, a trustee can avoid transfers made with the intent to impair the ability of...more
10/30/2019
/ Affirmative Defenses ,
Bankrtupcy Code Section 550 ,
Bankruptcy Code ,
Bankruptcy Court ,
Burden of Proof ,
Commercial Bankruptcy ,
Creditors ,
Debt Collection ,
Debtors ,
Due Process ,
Fraudulent Transfers ,
Google ,
Trustees
Judge Martin Glenn last week issued a decision in two related chapter 15 cases, In re Foreign Econ. Indus. Bank Ltd. “Vneshprombank” Ltd., No. 16-13534, and In re Larisa Markus, No. 19-10096, 2019 Bankr. LEXIS 3203 (Bankr....more
10/16/2019
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 15 ,
Commercial Bankruptcy ,
Cross-Border ,
Federal Rules of Bankruptcy Procedure ,
Federal Rules of Civil Procedure ,
Foreign Jurisdictions ,
Foreign Subsidiaries ,
Jurisdiction ,
Motion to Vacate ,
Public Policy
Section 548 of the Bankruptcy Code enables trustees to avoid certain pre-bankruptcy transfers of “an interest of the debtor in property,” where the transfer was intended to defraud creditors or where the transfer was made...more
9/23/2019
/ Acquisitions ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 7 ,
Commercial Bankruptcy ,
Fraudulent Transfers ,
Mergers ,
Motion for Reconsideration ,
Popular ,
Trustees ,
UFTA
Consider these facts. A debtor in bankruptcy sued two parties for breach of contract. The debtor assigned its rights and interests in the cause of action to another entity. The defendants moved to dismiss the lawsuit, arguing...more
9/11/2019
/ Appeals ,
Bankruptcy Court ,
Breach of Contract ,
Debtors ,
Federal Rules of Bankruptcy Procedure ,
Federal Rules of Civil Procedure ,
Filing Requirements ,
Jurisdiction ,
Motion to Dismiss ,
Personal Jurisdiction ,
Remand ,
Subject Matter Jurisdiction ,
Vacated
Chapter 15 of the Bankruptcy Code, added in 2005, provides a route for debtors to obtain US recognition of their insolvency proceedings in other countries. A foreign proceeding can be recognized under chapter 15 as either a...more
New York Bankruptcy Judge Sean Lean recently denied a Rule 2004 request because the movant sought documents for use in an unrelated litigation. In re Cambridge Analytica LLC, No. 18-11500, 2019 Bankr. LEXIS 1824 (Bankr....more
Delaware Bankruptcy Judge Brendan Shannon granted mechanic’s lien claimants $1.6 million for making a substantial contribution in a case by “demonstrably and materially facilitating the process of reorganization.” In re M & G...more
Last year, we discussed a decision by Judge Sean Lane of the United States Bankruptcy Court for the Southern District of New York concerning section 109(a) of the Bankruptcy Code. In a recent cross-border case, In re PT...more
5/31/2019
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 15 ,
Choice-of-Law ,
Commercial Bankruptcy ,
Creditors ,
Cross-Border ,
Debt Restructuring ,
Debtors ,
Eligibility ,
Filing Requirements ,
Forum Selection ,
Noteholders
Two weeks ago, we discussed asset sales under Bankruptcy Code section 363. As that post noted, section 363 requires court approval for asset sales outside the ordinary course of business, with courts ensuring that sales...more
5/6/2019
/ 363 Sales ,
Appeals ,
Auction ,
Bankruptcy Code ,
Bankruptcy Court ,
Breach of Contract ,
Chapter 11 ,
Chapter 7 ,
Commercial Bankruptcy ,
Creditors ,
Debtors ,
Fiduciary Duty ,
Private Sales ,
Sale of Assets ,
Settlement Agreements ,
Trustees
The subject matter jurisdiction of bankruptcy courts causes confusion and can be hard to understand. In a recent decision, the United States Court of Appeals for the Eleventh Circuit clarified the meaning of the phrase...more
We now address assets sales under Bankruptcy Code section 363. The statute allows debtors to use, sell, or lease their property in the ordinary course of business without court permission. But a debtor’s use, sale, or lease...more
4/17/2019
/ 363 Sales ,
Approval Requirements ,
Auction ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Commercial Bankruptcy ,
Commercial Leases ,
Debtors ,
Private Sales ,
Public Bidding ,
Sale of Assets
When a debtor files for bankruptcy, almost all proceedings to recover property from the debtor are automatically stayed by force of law. See 11 U.S.C. § 362(a). This provision, known as the automatic stay, is a central...more
When a party files for bankruptcy, the Bankruptcy Code imposes an automatic stay of litigation against a debtor for claims arising prior to the commencement of the bankruptcy case. See 11 U.S.C. § 362(a). Where there is a...more
If the National Labor Relations Board (“NLRB”) fines an employer for unlawfully firing workers who tried to unionize, can the employer discharge the fine in bankruptcy, or will the exception to discharge found in Bankruptcy...more
2/7/2019
/ Administrative Law Judge (ALJ) ,
Affirmative Defenses ,
Appeals ,
Back Pay ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 7 ,
Debtors ,
Dischargeable Debts ,
Employee Rights ,
Employer Liability Issues ,
Hiring & Firing ,
Just Cause ,
NLRA ,
NLRB ,
Personal Liability ,
Section 7 ,
Union Organizers ,
Willful Violations
A court in New York has allowed offshore debtors to take control of an investment account in the U.S. over the objection of a shareholder. At stake was the court’s discretion to permit chapter 15 debtors to access the funds...more
A sex-abuse scandal has landed another organization in bankruptcy court. USA Gymnastics (“USAG”) filed chapter 11 last week in Indiana following a team doctor’s conviction for abusing hundreds of girls.
...more
Defendants in a lawsuit didn’t waive their right to arbitrate even after moving to dismiss and answering a complaint, a court held last week. Arbitration wasn’t waived because the defendants hadn’t filed affirmative defenses...more
11/20/2018
/ Affirmative Defenses ,
Arbitration ,
Arbitration Agreements ,
Bankruptcy Court ,
Chapter 13 ,
Counterclaims ,
Debtors ,
Deed of Trust ,
Discovery ,
Mortgage Lenders ,
Motion for Summary Judgment ,
Motion to Dismiss ,
Prejudice