Does the Bankruptcy of a Guarantor Extinguish the Guaranty of Future Business Debts? Perhaps Not!
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 […]
California Court Allows Debtor to Create Exemption with Non-Exempt Assets
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
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 […]
Eric von Helms Gets ABC-Certified
Attorney Eric R. von Helms, of Kohner, Mann & Kailas, S.C. (KMK), was recently certified as a Business Bankruptcy Specialist by the American Board of Certification (ABC). His certification is based on meeting the ABC’s rigorous standards, including a day-long exam, strict continuing legal education requirements, a comprehensive peer review from fellow practitioners and adverse […]