Among the potential prolonged impacts of the COVID-19 pandemic is the interruption to supply chains throughout several critical industries. As a result, prices have increased as various goods and materials have become difficult to obtain. A recent Washington Post article noted that the overall consumer price index has increased by close to or above 5%
Michael R. Herz
Follow: Read more about Michael R. Herz
Court Rules that Litigation Trust Does Not Have to Pay Quarterly Fees to U.S. Trustee
By Michael R. Herz on
Pursuant to 28 U.S.C. § 1930(a)(6), chapter 11 debtors must pay a quarterly fee to the United States Trustee for deposit in the United States Treasury, until the case is converted or dismissed. The fee is based on a formula tied to the amount of disbursements made by the debtor during each quarter of the…
Second Circuit Stands by Brunner Test for Discharge of Student Loan Debt
By Michael R. Herz on
When the Bankruptcy Code was first enacted in 1978, student loan debt could be discharged either after the passage of five years since the repayment obligation began, or if repayment would impose an undue hardship on the debtor or his/her dependents. In 1990, the five-year waiting period was extended to seven years, and then in…
PPP Loan Availability in Bankruptcy Hinges on the SBA
By Michael R. Herz on
In a recent Fox Alert, Harriet Wallace examined the new potential for debtors and bankruptcy trustees to apply for Paycheck Protection Program (PPP) loans in connection with operating a debtor’s business in bankruptcy under the Consolidated Appropriations Act 2021 that was signed by President Trump on December 27, 2020.
While the availability of PPP…
Subchapter V, Not a Moment Too Soon
By Michael R. Herz on
Although enacted before the COVID-19 pandemic, the new Subchapter V of Chapter 11 of the Bankruptcy Code seems almost prescient now and could be a game-changer for small businesses looking to restructure. Indeed, the Subchapter V provisions became effective on February 19, 2020, not a moment too soon given that the pandemic gripped the country…
Bankruptcy Filing Trends During the Pandemic
By Michael R. Herz on
In a recent article for Bloomberg Law, Mark Hall and I examined why consumer bankruptcy filings have not (yet) increased during the COVID-19 pandemic as initially predicted, despite a significant uptick in commercial Chapter 11 filings. Through the end of September, consumer bankruptcy filings were behind the pace of filings for 2019 and for…
Bankruptcy FAQ for Distressed Businesses
By Michael R. Herz on
In these unsettled times, Fox Rothschild has prepared a comprehensive Bankruptcy FAQ to help businesses understand their potential bankruptcy options, the notable features of the bankruptcy process, how to prepare for a bankruptcy filing, and alternatives to bankruptcy. Items addressed in the FAQ include:
- The differences between filing for bankruptcy under Chapter 11 versus Chapter
…