The “COVID-19 Bankruptcy Relief Extension Act of 2021” was signed into law by President Biden on March 27, 2021, extending the key provisions of the COVID-19 Bankruptcy Relief Act which was enacted in the CARES Act for another year.
Section 1113 of the CARES Act, which temporarily amended bankruptcy law to assist individuals and businesses
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
Interplay Between Subordination Agreements and Chapter 11 Cramdown Plans
The Bankruptcy Code provides that subordination agreements are enforceable in bankruptcy to the same extent that such agreements are enforceable under non-bankruptcy law. 11 U.S.C. § 510(a). However, Section 1129(b)(1) of the Bankruptcy Code permits a Chapter 11 plan to be confirmed subject to certain requirements
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 diverges markedly from scientific principles, newly enacted provisions in Subchapter V of Chapter 11 of the Bankruptcy Code suggest some similarity. In In re Dani
The Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) govern procedure in cases arising under title 11 of the United States Code. Over time, the Bankruptcy Rules have been amended, and were most recently amended in 2020. The 2020 amendments to the Bankruptcy Rules took effect on December 1, 2020, and govern all proceedings commenced
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
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
In July 2020, the Court in In re Generation Res. Holding Co., LLC, 964 F.3d 958, 962 (10th Cir. 2020), held that subsequent transferees do not qualify as immediate or mediate transferees under Section 550(a)(2) because they did not possess the initial property transferred, and only possessed the proceeds of the transfer. In Generation
In proceedings arising out of the Tribune Company chapter 11 bankruptcy and a decision in which the United States Court of Appeals for the Second Circuit sustained the dismissal of billions of dollars in alleged fraudulent transfer claims related to a failed leveraged buyout transaction (LBO), the U.S. Supreme Court has requested input from the
In an appeal arising out of a Ponzi scheme by the principals of two entities, the receiver sought to recover funds from a bank allegedly diverted as fraudulent transfers under the Florida Uniform Fraudulent Transfer Act (the “FUFTA”) and to collect damages for alleged aiding and abetting of other torts. See Isaiah v. JPMorgan Chase