In a bankruptcy case, the bankruptcy estate (through the Debtor or Trustee) is permitted to employ counsel and other professionals (e.g.
Courts almost always treat fraud claims as per se (automatic) violations of N.C. Gen. Stat. § 75-1.1. Does that mean that fraudulent transfers of assets, likewise, automatically support recovery under section 75-1.1?
The 10th U.S. Circuit Court of Appeals issued an important preference decision on August 10, 2015.
What You Need to Know
Payments to creditors arising from a recent, single business transaction can be protected by the ordinary course of business defense.
C.W. Mining Company Case
The debtor C.W. Mining Company was failing. In an attempt to survive, it decided to try something new, specifically to increase coal production by converting its mining operations from continuous mining to a long wall system.
It’s hard to believe, but until now, the Seventh Circuit has never weighed in on the issue of when a claim arises in a bankruptcy case. As a result, the Seventh Circuit has had the luxury of sitting back, watching the Third Circuit go from Frenville to
A Chapter 11 debtor’s reorganization plan purporting to cure a default under a pre-bankruptcy loan agreement must pay “the agreed-upon default rate interest,” consistent with “the underlying agreement” and the “applicable nonbankruptcy law,” held the U.S. Court of Appeals for the Eleventh Circuit on Aug. 31, 2015. In re Sagamore Partners, Ltd., 2015 WL 5091909, at *4 (11th Cir. Aug. 31, 2015).
InIn re: Delta Petroleum Corp. (Bankr. Del. Apr. 2, 2015), the bankruptcy court (the “Court”) considered competing motions for summary judgment as to whether certain overriding royalty interests (“ORRIs”) constituted (1) mere contractual rights to payment that were discharged by the confirmed chapter 11 reorganization plan or (2) real property interests that were not part of the estate in bankruptcy and, thus, survived the trustee’s challenge.
When entrepreneurs decide to embark upon a new endeavor, they must first decide the form of entity to be used in conducting their business. Do they want to incorporate the business, and if so should they elect Subchapter S status? Would they be better served by forming a limited liability company, a limited liability partnership, or a general partnership? Each of these entities has its own beneficial characteristics when considering tax consequences, ease of operation, and potential liabilities of the individual entrepreneurs.
Providing notice to creditors of actions that could affect their interests is one of a debtor’s most important responsibilities. Absent proper notice, relief requested by a debtor that may be warranted could nonetheless be denied. Indeed, the Federal Rules of Bankruptcy Procedure set out pages and pages of rules regarding the time periods, form, and content of notices that a debtor, among others, must follow. As the United States Bankruptcy Court for the District of Colorado recently reminded us in the
“Who by water and who by fire, who by sword and who by beast, who by famine and who by thirst, who by [bankruptcy courts deciding matters that are outside their constitutional authority]”
– Rosh Hashanah liturgy, as modified