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Steptoe & Johnson PLLC

Appeals Courts Say Fraud Debts Can Survive Small Business Bankruptcies

Congress provided a streamlined mechanism for small businesses to reorganize when it enacted the Small Business Reorganization Act of 2019 and added Subchapter V to Chapter 11 of the Bankruptcy Code. Subchapter V gives small...more

Loeb & Loeb LLP

Can Small Business Corporate Debtors Discharge Section 523(a) Debts in a Subchapter V? The Eleventh Circuit Joins the Widening...

Loeb & Loeb LLP on

In Benshot, LLC v. 2 Monkey Trading, LLC et al., No. 23-12342, 2025 U.S. App. LEXIS 16936 (11th Cir. July 9, 2025), the U.S. Court of Appeals for the Eleventh Circuit addressed a difficult statutory question under the...more

Eversheds Sutherland (US) LLP

Preference pitfalls for Merchant Cash Advances—Lessons from the Southern District of New York

Merchant cash advance (MCA) funding provides a quick, “non loan” alternative for small businesses desiring to access additional capital, and its use has become prevalent in the last decade. Given the speed at which MCA...more

Kerr Russell

April Fools’ Day Brings Relief to Small Businesses and Individuals Filing Bankruptcy

Kerr Russell on

The U.S. Bankruptcy Code will be implementing inflation adjustments in its eligibility and exemption limits by 13.2% across various provisions. The official adjustments have been published in the Federal Register, marking the...more

Brownstein Hyatt Farber Schreck

A Possible, But Narrow, Path for Cannabis in Bankruptcy Court

A recent U.S. bankruptcy court opinion out of the Central District of California may have cracked the door open for companies formerly tied to the cannabis industry to pursue legal strategies using bankruptcy. Federal...more

Nelson Mullins Riley & Scarborough LLP

Subchapter V—Fourth Circuit Rules Not a Panacea for the Dishonest Debtor

In 2019, Congress enacted the Small Business Reorganization Act. This legislation created a new type of Chapter 11 reorganization under which certain businesses with total debts less than a certain threshold (currently $7.5...more

ArentFox Schiff

Fourth Circuit Rules That Corporate Small Business Debtors Under Subchapter V May Not Be Able to Discharge All Debts

ArentFox Schiff on

On June 7, 2022, the Fourth Circuit Court of Appeals unanimously held that the exceptions to discharge found in section 523(a) of the Bankruptcy Code, which ordinarily exclusively apply to individual debtors, also apply to...more

Patterson Belknap Webb & Tyler LLP

Unqualified "Cares" Act Funds Can't Be Used To Pay Creditors

U.S. Bankruptcy Judge Craig A. Gargotta rejected a debtor’s attempt to use “CARES Act” funds, which it did not actually qualify for, to pay creditors in its chapter 11 case. BR Healthcare Solutions (the “Debtor”)...more

Patterson Belknap Webb & Tyler LLP

Court Dismisses Bankruptcy Case to Enable Debtor to Seek a Paycheck Protection Loan

It is well known in the restructuring world that a debtor in bankruptcy can’t get a PPP loan. But what if you’re a debtor and decide a PPP loan could save your business? Will a court dismiss the case so you can seek a loan?...more

Bowditch & Dewey

Rent Abatement, PPP Loans (Maybe), and Other Bankruptcy Relief in the Appropriations Act

Bowditch & Dewey on

On December 27, 2020, the Consolidated Appropriations Act, 2021 became law. In addition to funding the government and providing coronavirus relief, the Act contains several intriguing amendments to the Bankruptcy Code. The...more

Burr & Forman

You Can Come In, But You Can’t Stay – Judge Grossman Dismisses Debtor’s Case for Re-designating Under the SBRA After Deadlines...

Burr & Forman on

“Timing in Life Is Everything” – John Sculley - Relying on a plain reading of Sections 1188 and 1189 of the Bankruptcy Code, Bankruptcy Judge Scott M. Grossman dismissed the Seven Stars bankruptcy case based on the debtor’s...more

Spilman Thomas & Battle, PLLC

Bankruptcy Chatter and COVID-19: Bankruptcy & Creditors' Rights Insights, Issue 1

Welcome to our first edition of Bankruptcy Chatter - our e-newsletter devoted to bankruptcy and creditors' rights. Our goal is to bring you the most up-to-date information, especially given this uncertain time during the...more

Lowndes

Big Changes for Small Business Coming to Chapter 11 Bankruptcy

Lowndes on

In the coming weeks, the Small Business Reorganization Act (the “SBRA”) will go into effect. As part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005—the most significant large-scale change to the...more

Tarter Krinsky & Drogin LLP

Bankruptcy Basics and Recent Developments

Scott Markowitz, co-chair of the Bankruptcy and Corporate Restructuring Group, and Rich Schoenstein, host and Litigation partner, talk Bankruptcy Basics and Recent Developments on the latest episode of Law Brief. Scott and...more

K&L Gates LLP

Small Business Debtor Reorganization: An Overview of Chapter 11’s New Subchapter V

K&L Gates LLP on

The term “small business debtor” originated in 1994 with Congress’s first attempt at a streamlined chapter 11 process for businesses that had insufficient assets to fund a typical bankruptcy reorganization....more

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