Right now, a business with less than $7.5 million in debt can file an easier, cheaper, and more efficient bankruptcy than a traditional Chapter 11. That privilege will soon be
Continue Reading The More Things Change, the More They Stay the Same? Survival of Small Businesses Again Dependent on Action From CongressSubchapter V Eligibility: Congress Fixes CARES Act Provision That Excluded Affiliates of Issuers But Ignores Potential Eligibility for Foreign, Publicly Traded Companies and Affiliates
On February 19, 2020, the Small Business Reorganization Act (the “SBRA”) became effective and created a new subchapter V to chapter 11 of the Bankruptcy Code. As we have reported,
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President Biden Signs Bill Extending Temporary $7.5 Million Subchapter V Debt Limit Increase Into 2024
Today, President Biden signed into law the Bankruptcy Threshold Adjustment and Technical Corrections Act, S. 3823, 117th Cong. (the “Act”), which, among other things, continues the temporary expansion of subchapter
Continue Reading President Biden Signs Bill Extending Temporary $7.5 Million Subchapter V Debt Limit Increase Into 2024A Day Late and Nearly $5 Million Short?: Legislation Introduced to Make Permanent the $7.5 Million Subchapter V Debt Limit As Temporary Extensions Sunset
On March 14, 2022, Senator Chuck Grassley (R-IA) introduced proposed legislation that—if enacted—would make permanent the $7.5 million debt limit applicable to debtors under subchapter V of chapter 11 of
Continue Reading A Day Late and Nearly $5 Million Short?: Legislation Introduced to Make Permanent the $7.5 Million Subchapter V Debt Limit As Temporary Extensions Sunset
Courts Analyze the Degree of “Commercial or Business Activity” Necessary for a Liquidating Debtor to be Eligible for Subchapter V Relief
“Just enough” is an undeniable—if informal—legal precept. The concept finds its way into canon from adequacy of pleading to application of equity. See, e.g., K-Tech Telecommunications, Inc. v. Time
Continue Reading Courts Analyze the Degree of “Commercial or Business Activity” Necessary for a Liquidating Debtor to be Eligible for Subchapter V Relief
Critical Vendor Order Insufficient to Protect Critical Vendors Against Preference Claims
In a recent post, our own Harriet Wallace observed a truism in a recent ruling by the United States Bankruptcy Court for the District of Delaware in the chapter
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Circuit Split Over Constitutionality of United States Trustee Fee Increases Picks Up More Steam
The Snowball effect, the Domino effect, and even the Streisand effect all demonstrate the accretive impact of small changes. Though without a catchy metaphor, the tendency of Circuit splits to
Continue Reading Circuit Split Over Constitutionality of United States Trustee Fee Increases Picks Up More Steam
When Subchapter V Management Misbehaves: “For Cause” Expansion of a Subchapter V Trustee’s Management Duties
Somewhere in our rough memories of high school science, we should recall the general principle that a gas will always expand to fill a given void. Although the Bankruptcy Code
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