This post provides a quick primer on the administrative expense claims. These claims are entitled to priority for actual and necessary goods and services supplied to a debtor in bankruptcy. For a claim to qualify for administrative expense status, a debtor must request that the claimant provide goods and services post-petition or induce the claimant to do so. The goods or services must result in a benefit to the bankruptcy estate. And the claimant bears the burden of proof that a claim qualifies for priority treatment under 11 U.S.C. § 503(b)(1)(A).
The High Court in London gave judgment on Friday, 3 July 2020 on the relative ranking of over $10 billion of subordinated liabilities in the administrations of two entities in the Lehman Brothers group.
A Chapter 13 bankruptcy plan requires a debtor to satisfy unsecured debts by paying all “projected disposable income” to unsecured creditors over a five-year period. In a recent case before the U.S.
Since the start of the COVID-19 pandemic in early 2020, commercial activities worldwide have been hit hard. It is especially difficult for businesses already affected by changes in the economic environment and consumption pattern. While waiting for the pandemic to alleviate and business activities to recover, the number of companies seeking bankruptcy protection or reorganization has increased each month.
Objection to IRS Proof of Claim, Filed Before Amendment to Rule 3007 Went Into Effect, Was Properly Mailed Only to IRS
Ability of a debtor to assume, assign, or reject oil and gas “leases” under section 365 of the Bankruptcy Code
The U.S. Court of Appeals for the Sixth Circuit recently held that wages withheld as a voluntary 401(k) contribution prior to filing bankruptcy were not considered “disposable income” under a Chapter 13 bankruptcy plan.
A copy of the opinion in In re Camille Davis is available at: Link to Opinion.
An individual debtor (“consumer”) filed a Chapter 13 bankruptcy with more than $200,000 in debt ($189,000 unsecured debt) and fewer than $39,000 in assets.
As we attempt to mitigate the potential effects of the COVID-19 pandemic on our global supply chain, stakeholders should be actively considering downstream impacts. In this current environment, considering prospective internal and external bankruptcy and restructuring threats may be more important than ever.
In a case litigated by the authors, the United States Court of Appeals for the Seventh Circuit held in In re Marzieh Bastanipour, Case No. 20-1373 (7th Cir. June 10, 2020) that Chapter 13 debtors are not permitted in forma pauperis fee waivers absent a showing of extraordinary circumstances.
In 2018, the Debtor, Marzieh Bastanipour, filed a Chapter 13 bankruptcy petition in the U.S. Bankruptcy Court for the Northern District of Illinois. This was the third Chapter 13 petition filed by the Debtor since 2013.
The Spanish government has announced emergency measures aimed at protecting businesses and supporting economic recovery and employment in the country.
We highlight the main measures in the decree (RDL 25/2020) below:
1. Support for investment and solvency
State-backed guarantees for new investments
A further €40 billion of guarantees from Spain’s financial agency (ICO) are made available to finance productive
investment (unlike previous guarantees, aimed to be liquidity buffers).