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Important Amendments to U.S. Bankruptcy Code: Modifications to Dollar Amount Thresholds

April 4, 2019 | Categories: Firm News, Publications | Topics:Tags: , ,

Section 104(a) of the Federal Bankruptcy Code provides for automatic adjustments to certain dollar amounts in the Bankruptcy Code every three years. (11 U.S.C. § 104(a)). The most recent adjustments took effect on April 1, 2019, and apply to all cases commenced on or after that date. Below is a summary of many adjustments that […]

Exemptions and Lien Avoidance Summary

April 3, 2019 | Categories: Firm News, Publications | Topics:Tags: , ,

(§ 522)—Exempt assets are assets that unsecured creditors (and some secured creditors) cannot reach. Some key points about exemptions are the following: A. Exemptions are for people—not for corporations, partnerships, or LLCs. But, two individuals working together might not be a partnership and each may be able to claim exemptions. (e.g. the “mom-and-pop” business customer) […]

Involuntary Petitions – Forcing a Deadbeat into Bankruptcy

April 3, 2019 | Categories: Firm News, Publications | Topics:Tags: , ,

The ultimate step in creditor collection brinkmanship is the decision to start an involuntary bankruptcy petition against a debtor. There are myriad reasons to commence an involuntary petition against a debtor. For example, the involuntary may be used as a last resort after all other efforts to obtain payment have been exhausted or appear useless; […]

Preference Defenses: Update on the BAPCPA Reforms

April 1, 2019 | Categories: Firm News, Publications | Topics:Tags: , , ,

When it was enacted, most publicity regarding the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“BAPCPA”) focused on consumer bankruptcy reforms. However, commercial creditors faced with the vexing problem of a preference action in bankruptcy also received some relief. The three most significant changes were touted at the time to offer the following […]

Sad Case for Reclamation Claims in Bankruptcy Scenario: Not Dead but Barely Breathing

April 3, 2018 | Categories: Firm News, Publications | Topics:Tags: , , ,

In 2006, after passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), Kohner, Mann & Kailas, S.C. (KMK) questioned whether reclamation claims in bankruptcy had become obsolete even though BAPCPA had doubled the period that a reclamation claim could cover in bankruptcy, from 20 to 45 days. Despite the expansion of […]

Important Bankruptcy Rule Amendments Went Into Effect on December 1, 2017

December 7, 2017 | Categories: Firm News, Publications | Topics:Tags: , ,

The Bankruptcy Rule Amendments Will Have a Significant Impact on Creditors, Including Secured Creditors   Overview   In this bulletin, we provide a brief summary of the many amendments to the Federal Rules of Bankruptcy Procedure (“FRBP”) that took effect on December 1, 2017.  These amended rules will have a significant impact on the rights […]

Dot Your I’s and Don’t Forget the T’s: Lender Loses Its Secured Status for Missing ‘T’ in Borrower’s Middle Name

October 6, 2017 | Categories: Firm News, Publications | Topics:Tags: ,

A recent bankruptcy case dramatically illustrates how critical it is for a lender to strictly comply with the requirements for creating a legally effective UCC financing statement, and the hard lessons that follow if a lender fails to do so.   In Mainsource Bank v. LEAF Capital Funding, LLC (In re Nay), 563 B.R. 535 […]

A Letter Of Credit and the Bankruptcy Paradox: Will It Protect You? – Maybe!

April 4, 2017 | Categories: Firm News, Publications | Topics:Tags: ,

A letter of credit (“LC”) can be a valuable tool in a trade creditor’s arsenal to secure payment of an account and at the same time avoid a future bankruptcy preference claim. However, creditors should beware. They can on occasion find themselves in the middle of what we call the “payment from the debtor bankruptcy […]

Creditors’ Committees in Bankruptcy Cases

April 4, 2017 | Categories: Firm News, Publications | Topics:Tags: ,

Consider the following scenario: The debtor filed a Chapter 11 reorganization case a couple of weeks ago and you just received an invitation from the Office of the United States Trustee to volunteer to be a member of the Official Committee of Unsecured Creditors of the debtor. Should you seek to join the committee? Is […]



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