The Ninth Circuit Considers Permissible Non-Debtor Releases

Admin on April 29, 2021 Posted in Bankruptcy Law, Bankruptcy News, Blog

Many reorganizations plan involve the release of non-debtor liability, but there are varied opinions about the role of these releases. While releases of non-debtor liability are attractive to parties like directors and officers, others argue that releasing non-debtor is against the intent of the Bankruptcy Code.  Due to these conflicting perspectives, a current split exists […]

Bankruptcy Trustee Powers Removed by Congress

Admin on April 15, 2021 Posted in Bankruptcy Law, Bankruptcy News, Blog

Since the start of the coronavirus pandemic, a large number of commercial tenants have to contend with the challenge of whether local or state regulations permitted their organization to remain open. Unfortunately, this means that many companies have been unable to generate revenue for the past year.  Given the financial hardships faced by many people […]

How In Re Shin Could Influence Which Bankruptcy Taxes are Dischargeable

Admin on March 30, 2021 Posted in Bankruptcy News, Blog

In a recent bankruptcy case (In Re Shin), a court questioned whether the recapture obligation of the first-time homebuyer credit constitutes a “tax” that can be applied to the non-discharge provision of the bankruptcy code. This credit refers to a tax credit established by the Housing and Economic Recovery Act of 2008. The credit, which […]

Court Split Occurs Involving Whether Section 546(e) “Financial Participant” Excludes Debtors

Admin on March 15, 2021 Posted in Bankruptcy News, Blog

In December 2020, a Delaware bankruptcy court held that the term “financial participant” as used in the safe harbor provisions of Section 546(e) of the Bankruptcy Code does not unequivocally exclude debtors. The Delaware court’s ruling is notable because it marks a split from a 2019 Southern District of New York court ruling. The Issue […]

What Changes to California’s Homestead Exemption Mean for Your Bankruptcy

Admin on October 15, 2020 Posted in Bankruptcy News, Blog, Types of Debt in Bankruptcy

In a recent poll conducted by TheTrackr.com, 29% of Americans reported that their home was their most valuable asset. Homeownership plays a critical role during the bankruptcy process. The role that homeownership plays in the bankruptcy, however, is about to change substantially due to legislation that has been passed by the California state legislature and […]

Rise in Bankruptcies?

Admin on May 30, 2018 Posted in Bankruptcy News, Blog

The current business environment may be right for a flurry of bankruptcy activity. On its face, such a statement sounds ridiculous. The US economy is experiencing its longest bull run in history, unemployment is low, companies in the tech sector complain of a lack of quality candidates, the Dow is surging, and construction continues to […]

Toys R Us Closing

Admin on March 26, 2018 Posted in Bankruptcy News, Blog

The Toys R Us bankruptcy, along with the bankruptcy of its sister store Babies R Us and parallel bankruptcy proceeding in Canada for its Canadian subsidiary, shocked the market. Not so much because a store with a strong brick and mortar presence filed for bankruptcy, but because its sheer sales numbers were not enough to […]

Making Sense of Bankruptcy Trends

Admin on February 15, 2018 Posted in Bankruptcy News, Blog

Government statistics demonstrate that bankruptcy filings fell by 0.7% last year, marking the smallest 12-month decline since 2010. Based strictly on these numbers, bankruptcy filings are up. During the recession and its immediate aftermath, bankruptcy filings soared. As the economy moved in a different direction and things improved, bankruptcy filings saw a steady decline. 2017 […]

Downward Trend in Bankruptcy Filings

Admin on December 16, 2017 Posted in Bankruptcy News, Blog

Government statistics regarding bankruptcy filings demonstrate an interesting trend. The trend shows a four-year downward direction and an overall downward trajectory. This table represents filings between 2014 and 2017: Year Total Bankruptcy Filings Business Bankruptcy Filings Consumer (Personal) Bankruptcy Filings 2017 796,037 23,443 772,594 2016 819,159 25,227 793,932 2015 879,736 25,046 854,690 2014 1,000,083 30,113 […]

Criminal Proceedings and the Automatic Stay

Admin on October 22, 2016 Posted in Bankruptcy Law, Bankruptcy News

One of the most unique and perhaps most important features of the bankruptcy process is the automatic stay. The automatic stay, in section 362 of the US Bankruptcy Code, halts creditor collection of debtor assets. It is effective as soon as the debtor files for bankruptcy and provides the debtor breathing room to reorganize get […]