Courts are divided as to whether rule 9(b)’s heightened pleading standard applies to fraudulent-transfer claims. Normally, a complaint under the federal rules must only contain “a short and plain statement of the claim showing that the pleader is entitled to relief….”[1] But sometimes, stricter standards apply.
If you can look into the seeds of time,
And say which grain will grow and which will not,
Speak then unto me, who neither beg nor fear
Your favors nor your hate.
—William Shakespeare
Macbeth, Act I, Scene 3
A common exception to the discharge of a debt is that the debtor obtained credit by use of a false financial statement.[1] The Fifth Circuit recently examined this exception and provided important insight into what it means for a creditor to reasonably rely on a debtor’s statement as required by § 523(a)(2)(B).
Most bankruptcy professionals know that “retirement funds” are generally exempt assets under § 522(d)(12) or 522(b)(3)(C). However, those funds must meet very precise requirements to meet this qualification. Specifically, the funds must be “retirement funds,” and they must be held in an account that is exempt from taxation under certain sections of the Internal Revenue Code.
Dischargeability of student loans is a “hot button” issue in both the bankruptcy world and mainstream media. In fact, last September another colleague wrote about the history of student loan dischargeability, and the current obstacles borrowers face.[1] Since that article, the U.S.
One thing that Toys “R” Us, Sears and Forever 21 have in common is that all three cases are administratively insolvent.[1] Vendors who extended credit to the debtor after the petition date in reliance on the debtor’s assurances that it had adequate “DIP” financing to justify new credit terms got stuck a second time when there were inad
Vast Upheaval to an Already Fragile Ecosystem
While the Coronavirus Aid, Relief and Economic Security Act and the Paycheck Protection Program and Health Care Enhancement Act provided $175 billion in relief funds to health care providers generally, those funds were not devoted solely to hospitals and were distributed based on various criteria that did not correspond to financial need.
Companies in crisis are facing major challenges. Not only do they have to negotiate with stakeholders about their restructuring contributions and restructuring loans, they also have to make what are often difficult decisions on a wide range of legal issues.
