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Does the Bankruptcy of a Guarantor Extinguish the Guaranty of Future Business Debts? Perhaps Not!

June 29, 2020 | Categories: Firm News, Publications | Topics:Tags: , ,

The scenario is unusual but is becoming increasingly more common. A business enters into a credit agreement with a creditor to purchase goods or services. The creditor requires that one or more of the principals of the business provides a personal guaranty of the obligations of the business. The guarantors then file personal bankruptcy but […]

The C.A.R.E.S. Act: Trillions in Stimulus Payments, But also Business Bankruptcy Law Changes Creditors Need to Know

April 6, 2020 | Categories: Firm News, Publications | Topics:Tags: , , , ,

The Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) passed by Congress and signed into law by the President on March 27, 2020, provides substantial economic stimulus to individuals, businesses, and health care facilities to address the remarkable and unprecedented impacts of the novel coronavirus (COVID-19). The CARES Act also includes important provisions […]

California Court Allows Debtor to Create Exemption with Non-Exempt Assets

January 2, 2020 | Categories: Firm News, Publications | Topics:Tags: , , ,

Homestead exemption laws can be used by debtors to shield real property assets from collection by creditors. A recent federal district court decision held that such exemptions take priority over fraudulent transfer laws where the exemptions and the fraudulent transfer laws may conflict.   In Hinds & Shankman, LLP v. Lapides, 2019 WL 4955148, 67 […]

SCOTUS Reasons “Fair Ground of Doubt” Strikes a Balance

October 22, 2019 | Categories: Firm News, Publications | Topics:Tags: , ,

Under a recent United States Supreme Court ruling, creditors could be subject to sanctions if there is no “fair ground of doubt” as to the actions violating a debtor’s bankruptcy discharge. In Taggart v. Lorenzen, 139 S.Ct. 1795, 204 L.Ed.2d (2019), the Supreme Court held that the appropriate standard for finding civil contempt is whether […]

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 […]



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