Everyone is feeling the impacts of the highest rate of inflation in decades, with the Consumer Price Index (CPI) still reporting a 8.3% year-over-year rate of inflation. Many pundits are blaming the impact of the Russian sanctions as a primary driver. This month, U.S. companies reporting earnings are repeating the same mantra.
Creditors that file motions to dismiss or convert pursuant to 11 U.S.C. § 1112 [1] to reduce delay by debtors must generally avoid continued hearings in subchapter V cases.
If a mortgage is ambiguous or contains a mistake, a lender may generally reform the mortgage under state law. [1] But what if a borrower files a bankruptcy petition before a lender does so? In a divided opinion, the U.S. Court of Appeals for the Fifth Circuit confirmed that a lender may not reform a mortgage post-petition.
Our committee has been quite active during the last few months!
Retired Bankruptcy Judge Louis Kornreich has been a mainstay for the ABI Mediation Committee for many years and now serves as a co-chair. As a U.S. Bankruptcy Judge, he was respected for his innovative approach to solving problems that crop up in cases by employing mediation-like skills to help parties resolve their disputes without using the full panoply of litigation tools.
As bankruptcy cases of all types continue to be filed in record numbers, the use of mediation is increasing. This trend is likely to continue. This article focuses on the concepts that a lawyer must know and actions that he/she should take to avoid or overcome an impasse in mediation. The obstacles to reaching a settlement vary with each case.
In an opinion issued on January 13, 2022, Judge David Novak of the United States District Court for the Eastern District of Virginia struck down non-consensual third-party releases [2] from a plan confirmed by the bankruptcy court.
In bankruptcy, a debtor-in-possession’s chief goal is to get its plan of reorganization confirmed by the bankruptcy court.
Seeking relief under the Bankruptcy Code is a common method of restructuring a business pushed into insolvency by tort claims. Under current law, filing a petition under chapter 11 of the Bankruptcy Code allows a business to stay all litigation against it and propose a plan of reorganization that channels tort claims to a settlement trust for valuation and payment.
Since going effective on Feb. 19, 2020, much has been written regarding the restructuring benefits of a chapter 11, subchapter V case. Prior to its implementation, many small businesses were, from a practical standpoint, unable to benefit from chapter 11 due to the expense of filing and prosecuting a traditional chapter 11 case.
