On June 1, 2015, the U.S. Supreme Court decided Bank of America N.A., v. Caulkett,[1] unanimously holding that debtors could not strip off a second lien in a chapter 7 proceeding. In Caulkett, the debtors were attempting to void a junior lien where the debt owed by the senior lien exceeded the value of the collateral.
Foreclosure of personal property is a necessary evil for lenders in the commercial default context, and the foreclosure and sale must meet the commercially reasonable standard to withstand later scrutiny by competing creditors and unrequited borrowers.
The Fifth Circuit Court of Appeals recently held that a lien in favor of a condominium association is not a “security interest” for purposes of 11 U.S.C. § 1322(b)(2).
Analyzing the complex commercial real estate sometimes involves the identification of intangible assets and sourcing a real estate appraiser who is familiar with business valuation practices. For business appraisers, “intangible assets” are defined as:
A company’s decision to file for chapter 11 bankruptcy protection will inevitably cause disruption to the debtor’s operations, communications and daily routine, especially at the start of the bankruptcy case.
The Judicial Conference Advisory Committee on Bankruptcy Rules recently unanimously agreed to proposed amendments to Bankruptcy Rule 3002-1, which requires a secured creditor of residential property to notify debtors of changes to post-petition payments that may become due over the course of a chapter 13 bankruptcy.
Bankruptcy courts are vested with the inherent and statutory authority to sanction litigants for acting in bad faith and engaging in otherwise unreasonable or inappropriate conduct.
In In re Halloum,[1] the Ninth Circuit Bankruptcy Appellate Panel reversed an order granting a fee expense award in excess of $116,000 based on the failure of the bankruptcy court to make supporting findings of fact.
On June 15, 2015, in Baker Botts LLP v. ASARCO LLC , the U.S.
One of the most attractive benefits of a bankruptcy filing is the potential discharge of indebtedness.[1] However, the bankruptcy discharge may have significant tax consequences for the debtor. Generally, a taxpayer must include, in its gross income, any amount of debt that is discharged, or cancelled, other than by payment.[2]
