SubChapter V, the new small business chapter 11 bankruptcy is approximately 2 years old. Congress’s goal was to create a less costly form of reorganization for small businesses. For many small businesses, Chapter 11 filings were too expensive. SubChapter V combines elements of chapters 13 (which is only for individuals) and 11.We wrote about SubChapter V on our blog at https://shenwick.blogspot.com/search?q=subchapter+vA recent article at Bloomberg titled “Analysis: Four Statistical Snapshots of Subchapter V’s 1st Year can be found at https://news.bloomberglaw.com/bloomberg-law-analysis/analysis-four-statistical-snapshots-of-subchapter-vs-1st-yearThe Bloomberg article states that since the first case was filed in the Middle District of Tennessee on Feb. 19, 2020, a total of 1,643 bankruptcies were filed pursuant to Subchapter V. The Middle District of Florida had the most Subchapter V cases filed during its first year with more than 140 cases. Florida, California, and Texas rounded out the top five.According to the article, approximately 50 Subchapter V cases were filed in the SDNY and 50 in the EDNY.A recent article at JD Supra titled Subchapter V Changed The Chapter 11 Bankruptcy Landscape – How Should A Creditor Protect Itself? Which can be found at https://www.jdsupra.com/legalnews/subchapter-v-changed-the-chapter-11-1845098/ details how creditors can protect themselves if they are involved in a Subchapter V case.At Shenwick & Associates, we filed one Subchapter V case and then quickly moved to convert that case to chapter 7 due to, in our opinion, a difficult to deal with and inexperienced Subchapter V Trustee. Unfortunately SubChapter V requires that a Subchapter V Trustee be retained in the proceeding and the Debtor has no control over who that trustee will be.Subchapter V remains a work in progress and only time will tell if this new version of chapter 11 will be successful!Attorneys, accountants or debtors who have questions about Subchapter v or small business reorganizations should contact Jim Shenwick, Esq 212 541 6224 jshenwick@gmail.com
Why there’s a unified movement to cancel student loans but not credit card debt or mortgages? Very interesting article discussing this topic at CNBC at https://www.cnbc.com/2022/05/10/why-theres-a-push-to-forgive-student-loans-but-not-other-debt.htmlJim Shenwick, Esq. 212-541-6224 jshenwick@gmail.com
I’ve been having nightmares about the 9th’s Circuit’s decision in Siegel for 20 years. Broad strokes, Siegel (143 F.3d 525 (9th Cir. 1998) holds that a filed claim in a no asset bankruptcy case to which no one objects is entitled to preclusive effect in subsequent litigation by reason of Bankruptcy Code §502. In Siegel, […] The post Siegel, Claim Preclusion & Me appeared first on Bankruptcy Mastery.
Pot and Bankruptcy Law, Not a Great MixAn article posted at JDSUPRA, titled "Even Indirect Income from Cannabis Can Get You Banned From Bankruptcy" notes that "despite widespread trends in state-level legalization and decriminalization of high-THC cannabis and growing acceptance of cannabis among Americans, cannabis and cannabis products remain illegal under federal law". Accordingly, the article states that bankruptcy courts have consistently dismissed cases when a debtor directly engages in violations of the Federal Controlled Substances Act ("CSA") or where the debtor's reorganization efforts depend on proceeds derived from CSA violations. The article can be found at https://lnkd.in/eKqHw-GaJim Shenwick, Esq. 212 541 6224 jshenwick@gmail.com#cannabis#bankruptcy
Chapter 13 bankruptcy can discharge any non support obligations associated with a divorce. That’s worth repeating: any marital settlement agreement or court judgment that calls for payment or indemnity by one spouse to the other in the future is potentially vulnerable to a subsequent bankruptcy filing by the obligor-spouse. While obligations deemed to be “support” […] The post How To Bankruptcy-Proof A Divorce Settlement appeared first on Bankruptcy Mastery.
If you plan on filing for either Chapter 7 or Chapter 13 bankruptcy in Pennsylvania, you need to be prepared for the challenges you may face. So, before you file, it’s wise to learn why bankruptcies are most often denied in Pennsylvania. If your Chapter 7 bankruptcy was denied in Pennsylvania, it was probably because […] The post Reasons that Bankruptcies Are Denied in Pennsylvania appeared first on .
For some people on Social Security, Doing Nothing About Debt Problems Works Fine I tell a couple people a month there’s no reason to file bankruptcy. Most often older people who have no income except for social security. For them, there’s often no reason to file bankruptcy. Here’s why. People File Bankruptcy for Three Reasons […] The post Solving Your Debt Problems By Doing Nothing. by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.
https://www.cutimes.com/2022/04/26/n-y-credit-union-sues-ncua-over-taxi-medallion-loan-participation-dispute/?slreturn=20220404101101
In Bankruptcy, Can I Protect the Equity in My House? Bankruptcy is set up by the Federal government, but each state sets its own rules on how much equity you can protect if you file Chapter 7 bankruptcy. That protection is called your homestead exemption. In April 2022, Colorado raised their homestead exemption from $75,000 […] The post Colorado Bankruptcy Homestead Just Increased to $250,000 by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.
April 2022 saw courts dish out two big penalties for Bankruptcy Fraud. In April 2022, over in the UK, former tennis great Boris Becker was sentenced to two-and-a-half years in prison for bankruptcy fraud: hiding $3 million in assets during his case. Becker had landed bankruptcy in the UK back in 2017, because of a […] The post Penalties for Bankruptcy Fraud by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.