Small Business

A Business that Never Generated Income Is Eligible for Subchapter V, Judge Norman Says

The definition of ‘small business’ uses the word ‘activities,’ not ‘operations,’ making nonoperating small business eligible for Subchapter V.

Chicago District Judge Decides that Sub V Debtors Can Have Nondischargeable Debts

Reversing the bankruptcy court, the Chicago district judge follows the Fourth and Fifth Circuits and rejects a contrary holding by the Ninth Circuit BAP.

Judge Thorne Describes the Quantum of Evidence Needed to Show a Plan Is Fair and Equitable

Although a ‘true-up’ cannot be imposed, a debtor could employ a ‘true-up’ to confirm an otherwise nonconfirmable plan.

Sub V Trustee in Chapter 11 Can’t Be Enlisted to Pursue Avoidance Actions

District judge decides that an individual debtor has standing to appeal conversion from Subchapter V of chapter 11 to chapter 7.

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October Total Bankruptcy Filings Increased 16 Percent over 2023

Total bankruptcy filings were 47,104 in October 2024, a 16 percent increase from the October 2023 total of 40,674, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data. Individual bankruptcy filings totaled 44,522 in October 2024, also registering a 16 percent increase from the October 2023 38,278 filing total. There were 27,358 individual chapter 7 filings in October 2024, a 22 percent increase over the 22,351 filings recorded in October 2023, and there were 17,091 individual chapter 13 filings in October 2024, an 8 percent increase over the 15,874 filings in October the previous year.
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Fully Secured, Nonrecourse Creditors Can Be Involuntary Petitioners, BAP Says

An involuntary petitioner whose claim was paid after filing is still counted as an involuntary petitioner, the Ninth Circuit BAP says.
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