Equity security holders[2] or investors [3] (“Equity Holders”) in debtor entities are usually subordinated to creditors’ claims in bankruptcy cases.[4] This need not always be the case. Two conditions exist where Equity Holders’ claims may be equal or superior to general unsecured creditors’ claims. The first are claims based on “fraudulent retention” (“Fraudulent Retention Claims”). The second are claims based on debtors’ post-petition interfering with Equity Holder’s rights to sell their investment, to benefit the debtors’ reorganization effort (“Freeze Claims”). The post A LEG UP FOR EQUITY? Part I – Fraudulent Retention Claims^[1] appeared first on Wayne Greenwald, P.C..

Receptivity is being open to listening and accepting new information, ideas, or suggestions.  In the context of mediation, receptivity is often the key to resolution (i.e., settlement).  Receptivity is also the core focus of Robert Cialdini’s Pre-Suasion: A Revolutionary Way to Influence and Persuade. Cialdini coined the word “pre-suasion” to encapsulate the process of laying the groundwork for receptivity.  Relying on real-life situations and scientific studies, Pre-Suasion explores a myriad of ways to enhance receptivity before making any meaningful “asks.”  Word choice, focus, and connection are among the tools available to build receptivity. Below I explore some examples drawn from Pre-Suasion and how they apply to mediation and conflict resolution. Words Matter. How you say something has an impact on the listener’s receptivity.  For example, a healthcare organization may ask speakers to make these changes in their wording: Standard Language          changed to             Replacement Language Bullet points                                                     Information points Business targets                                               Business goals Attack a problem                                             Approach a problem Beat competition                                             Outpace competition Why?  Because a healthcare organization is focused on healing.  Bullets, targets, attacks, and beatings are the antithesis of healing.  Words matter. The words we say can open up opportunities for agreement.  Language is one of the primary means of engaging receptivity.  In mediation or negotiation, choose your words carefully to engender openness and connection, while avoiding words that may trigger a fight or flight reaction. Focus Matters. What is focal is presumed causal, meaning that what has our attention (focus) shapes (causes) our views on the subject matter.  For example, a study compared the impact of changing the illustrations on a website landing page of a company selling furniture.  If the landing page had fluffy clouds, then it drew in customers interested in the comfort of the furniture, whereas if the landing page had pennies, then it drew in customers interested in saving money. In a different study, analyzing interrogations and confessions in criminal investigations, it was determined that the camera angle (focus) altered the viewer’s bias (causation) between suspect and interrogator.  If the camera focused on the suspect, then viewers were more likely to perceive guilt.  Whereas, if the camera focused on the interrogator, then viewers were more likely to perceive innocence.  The only thing that changed the impact was recording the interrogation from the side where both suspect and interrogator were equally visible. How does this play out in a mediation or negotiation?  Focusing on areas of agreement or positive deal points softens the impact of the areas of disagreement or negative deal points.  This, in turn, enhances receptivity to exploring options for resolution of the disputed areas. Connection Matters. Connection is a critical component of reaching receptivity.  Connection comes in many forms – a familial connection, a cultural connection, an emotional connection, etc.  Here are two examples drawn from the Holocaust that illustrate the power of connection. In 1940, a career diplomat, Chiune Sugihara, worked in the Japanese consulate in Lithuania.  As doors closed to Jews all around the world, a group asked Sugihara for visas so they could emigrate to Japan.  Sugihara sought permission from Tokyo but was denied. He asked again.  Twice.  Each time denied.  Nonetheless, defying his government, Sugihara issued thousands of visas before being recalled to Tokyo.  In doing so, he saved thousands of lives and effectively ended his career in diplomacy. Why did he do this?  Connection.  Growing up, his father was a Japanese official stationed in Korea.  While in Korea, his parents opened an inn where they welcomed guests of all backgrounds.  They taught Sugihara that everyone should be welcomed because we are all members of the human family.  Years later, when asked why he risked his career to issue these visas, he explained that the Jewish applicants were members of the human family and needed his help.  This sense of connection saved lives. Fast forward to 1942.  The Nazis were pressuring their Japanese allies to adopt the “final solution” for the Jews in Japan.  Josef Meisinger, known as the “Butcher of Warsaw,” was sent to Japan to convince the Japanese government.  The Japanese officials tasked with deciding sought input from both sides – the Nazis and the Jewish refugees.  The Jewish community sent two rabbis – one a scholar and the other known for his humanity.  The Japanese officials asked the rabbis why the Nazis hate them so much.  The scholar struggled to offer a response, but the other rabbi answered simply, “Because we are Asian, like you.”  His quick thinking and intuitive ability to build a connection saved 26,000 lives. While very few mediations involve saving thousands of lives, the power of connection remains just as true.  Finding or building a connection can be a powerful pathway to achieving receptivity. Wording, focus, and connection are three tools available to build receptivity.  Pre-Suasion is replete with other suggestions to lay the groundwork for receptivity. Author’s Note: As a mediator, I am a “forever student” always seeking new ways to help people find a path to resolution in mediation.  Robert Cialdini’s “Pre-Suasion: A Revolutionary Way to Influence and Persuade” inspired this post.  In reading his book, I was struck by the relevance to my mediation work.  In the book, he explores a myriad of ways to enhance receptivity and focuses on laying the groundwork for receptivity before making any meaningful “asks.”  If you aren’t a reader, but still interested in what he has to say, then you may enjoy this podcast in which he was interviewed about his book:  Barry Ritholtz, Masters in Business (June 18, 2021), https://podcasts.apple.com/us/podcast/robert-cialdini-on-the-psychology-of-influence-podcast/id730188152?i=1000526009805. Receptivity and Resolution   The post Mediator Insights: Receptivity and Resolution appeared first on Sylvia Mayer Law.

 While Alex Jones has created a lot of controversy through his decision to play three of his entities into voluntary bankruptcy, this was not his first brush with bankruptcy. In 2020, his ex-wife, Kelly R. Jones, initiated an involuntary bankruptcy petition against him. In re Jones, Case No. 20-10118 (Bankr. W. D. Texas). Ms. Jones filed the petition pro se, meaning that she did not have a lawyer. The case was dismissed after the bankruptcy court determined that Ms. Jones was not an unsecured creditor. Only unsecured creditors are entitled to bring involuntary bankruptcy petitions. The Bankruptcy Court determined that Ms. Jones's claim of $786,861 was secured by property worth at least $1,250,000. (Dkt. #92). Although Mr. Jones could have sought to recover his legal fees incurred in defending against the petition, he did not.According to the bankruptcy filings, Mr. Jones owns at least two properties since they were pledged to Kelly Jones in the divorce. One of these properties, 5420 McCormick Mountain Dr., Austin, TX 78734 is a waterfront property with a modest 1.578 sq. ft. residence on it.  According to Zillow, the property is currently worth $2.2 million. However, if it is Mr. Jones's homestead, it would be exempt from claims of creditors. Mr. Jones also owns a 5.01 acre tract in Perdernales Hills Ranch in Blanco County, Texas. This property is appraised by the Blanco County Appraisal District at $137,270, although tax appraisal values generally lag behind market value. The address given for Mr. Jones in the bankruptcy proceeding was 1400 Barton Creek Boulevard, Austin, TX 78735. This property is owned by RXXCTTGAA Trust and is valued by the Travis Central Appraisal District at $2.7 million. The trust acquired the property in 2015. The summons on file with the Bankruptcy Clerk indicates that Mr. Jones was served with the summons at this address. In one bit of foreshadowing, Ms. Jones used the involuntary bankruptcy petition as the basis for removing the couple's divorce case to U.S. District Court.  Case No. 1:20-cv-151-LY, Jones v. Jones (W.D. Texas). The case was remanded back to state court. In in irony (or perhaps simply a common refrain of an unsuccessful litigant), Ms. Jones complained about the Travis County State District Court's "repeated denial of [her] equal rights to offer and present evidence in Court and its intentional, arbitrary, irrational and unjustified denial of equal access to the court."  Mr. Jones has made similar statements about his treatment in the Travis County District Courts of late. What does this mean for the present Jones-related bankruptcy cases? Nothing directly, although it illustrates that bankruptcy can be used as both a sword and a shield. Ms. Jones unsuccessfully attempted to bring her ex-husband into bankruptcy to gain an advantage in their post-divorce relationships. Mr. Jones is now seeking to use bankruptcy to shield several of his entities from claims and remove pending litigation to federal court. The one distinction between the two filings is that Ms. Jones was acting pro se while Mr. Jones is represented by qualified attorneys. In a proceeding as complex as bankruptcy, having qualified counsel minimizes the risk that a litigant will jeopardize their case through lack of knowledge of the procedure. Disclaimer: My sources for this post consist of publicly available records. I do not claim any personal knowledge of the facts beyond what I have found in these records. 

Happy Earth Day, Texans! Texas is a beautiful state that we are lucky to call ‘home’. In order to protect our wonderful home, we need to make sure it is clean & taken care of. Below are ways that Texans can do their part to help keep our home clean, both on Earth Day AND all year long.   Earth Day Celebrations Earth Day Texas – Dallas When: April 22-24, 2022 Where: Kay Bailey Hutchison Convention Center Time: 10 am – 6 pm Description: “The mother of all eco expos is held on three days and attracts thousands of visitors to Fair Park. Hundreds of exhibitors will be on hand, including environmental non-profits, businesses, academic institutions and government agencies aiming to raise the environmental consciousness of North Texans. There is also a full schedule of speakers, demonstrations and films at this free fest founded by Dallas philanthropist Trammell S. Crow.” Website: https://earthx.org/activities/   Plant A Seed For Earth Day – Fort Worth When: April 22, 2022 Where: Fort Worth Public Library Time: 4 pm – 5 pm Description: “At your library, you have a fun space for creativity and development. Bring and friend and learn how to care for it and see how a plant grows. As a destination for discovery, your Fort Worth Public Library is a location for learners of any age. This is a free event!” (Perfect for families!) Website: https://newsroom.heb.com/event/plant-a-seed-for-earth-day-fort-worth-public-library/   Earth Day at Woodlawn Lake Park – San Antonio When: April 23, 2022 Where: 1103 Cincinnati Ave. (Woodlawn Lake Park) Time: 10 am – 2 pm Description: “Celebrate Earth Day 2022 with San Antonio Parks and Recreation! This fun-filled event will feature over 50 environmental organizations, hands on family activities, free tree adoptions, engaging dance and musical performances, and lots more! Connect with representatives from local organizations whose work focuses on conservation, take a free Fitness in the Park class, and enjoy a healthy treat from one of our food vendors.” Website: https://www.sanantonio.gov/ParksAndRec/News-Events/Earth-Day   Earth Day ATX 2022 – Austin When: April 23, 2022 Where: Huston-Tillotson University Time: 12 pm – 6 pm Description: “Earth Day Austin is the largest sustainability event in Central Texas. On April 23, 2022, thousands from the Austin Area and beyond will come to learn about conservation and sustainable solutions, celebrate our love for the environment, and get connected to the best and most innovative green businesses and organizations. Your business or organization should be right in the center of it. With family and friends, attendees explore rich, in-depth programming, exciting new activities and engaging exhibitions that allow them to discover new connections to the environment and environmental issues. Inspired by their experiences and interactions, participants are empowered to make new sustainable choices that enhance their lives while helping the planet.” Website: https://earthdayaustin.com/for-exhibitors-2-2/   ____________________________________________________________________   Earth Day, Every Day! Groundwork Dallas – Dallas When: Every Saturday Where: Event locations changing constantly. Click here for location. Time: 9 am – 12 pm Description: Join Groundwork Dallas every Saturday to help protect and clean Dallas! Website: https://greensourcedfw.org/events/groundwork-dallas-parks-cleanup-volunteer-opportunity-dallas-every-saturday   Organize A Litter Cleanup – Fort Worth When: Can be whichever date you choose Where: Can be whichever location you choose Time: Can be whichever time you choose Description: “Keep Fort Worth Beautiful supports volunteers by providing them with trash bags and gloves, which helps in their efforts to clean litter and have a positive impact on their community. KFWB typically provides the following supplies for a standard two-hour cleanup: One bag per adult volunteer One bag per two youth volunteers Gloves for all volunteers Equipment to help any volunteers who are elderly or who have disabilities (available upon request)” Website: Create your littler cleanup here: https://www.fortworthtexas.gov/departments/code-compliance/kfwb/initiatives/litter   San Antonio River Authority – San Antonio When: Can be whichever date you choose Where: Can be whichever location you choose Time: Can be whichever time you choose Description: “Every year, the San Antonio River Authority, City of San Antonio, Bexar County, other governmental agencies, and volunteers pull tons of trash out of area creeks and rivers. A piece of trash you see on the sidewalk in your neighborhood or on the ground at an area park will likely end up in a local waterway. You can help make a difference. Don’t let litter trash your river!” Website: https://www.sariverauthority.org/trash-initiative/volunteer-toolkit   Keep Austin Beautiful – Austin When: The 2nd Saturday of every month Where: Event locations changing constantly Time: Event times changing constantly Description: “We inspire and educate all Austinites to volunteer together, beautify green spaces, clean waterways, and reduce waste every day. Keep Austin Beautiful empowers people to care for the environment by providing community resources, education, and volunteer opportunities.” Website: Must register here per event: https://keepaustinbeautiful.org/volunteer-opportunities/ The post How Can Texans Celebrate Earth Day? appeared first on Allmand Law Firm, PLLC.

Happy Earth Day, Texans! Texas is a beautiful state that we are lucky to call ‘home’. In order to protect our wonderful home, we need to make sure it is clean & taken care of. Below are ways that Texans can do their part to help keep our home clean, both on Earth Day AND all year long. Earth Day Celebrations Earth Day Texas – Dallas When: April 22-24, 2022 Where: Kay Bailey Hutchison Convention Center Time: 10 am – 6 pm Description: “The mother of all eco expos is held on three days and attracts thousands of visitors to Fair Park. Hundreds of exhibitors will be on hand, including environmental non-profits, businesses, academic institutions and government agencies aiming to raise the environmental consciousness of North Texans. There is also a full schedule of speakers, demonstrations and films at this free fest founded by Dallas philanthropist Trammell S. Crow.” Website: https://earthx.org/activities/ Plant A Seed For Earth Day – Fort Worth When: April 22, 2022 Where: Fort Worth Public Library Time: 4 pm – 5 pm Description: “At your library, you have a fun space for creativity and development. Bring and friend and learn how to care for it and see how a plant grows. As a destination for discovery, your Fort Worth Public Library is a location for learners of any age. This is a free event!” (Perfect for families!) Website: https://newsroom.heb.com/event/plant-a-seed-for-earth-day-fort-worth-public-library/ Earth Day at Woodlawn Lake Park – San Antonio When: April 23, 2022 Where: 1103 Cincinnati Ave. (Woodlawn Lake Park) Time: 10 am – 2 pm Description: “Celebrate Earth Day 2022 with San Antonio Parks and Recreation! This fun-filled event will feature over 50 environmental organizations, hands on family activities, free tree adoptions, engaging dance and musical performances, and lots more! Connect with representatives from local organizations whose work focuses on conservation, take a free Fitness in the Park class, and enjoy a healthy treat from one of our food vendors.” Website: https://www.sanantonio.gov/ParksAndRec/News-Events/Earth-Day Earth Day ATX 2022 – Austin When: April 23, 2022 Where: Huston-Tillotson University Time: 12 pm – 6 pm Description: “Earth Day Austin is the largest sustainability event in Central Texas. On April 23, 2022, thousands from the Austin Area and beyond will come to learn about conservation and sustainable solutions, celebrate our love for the environment, and get connected to the best and most innovative green businesses and organizations. Your business or organization should be right in the center of it. With family and friends, attendees explore rich, in-depth programming, exciting new activities and engaging exhibitions that allow them to discover new connections to the environment and environmental issues. Inspired by their experiences and interactions, participants are empowered to make new sustainable choices that enhance their lives while helping the planet.” Website: https://earthdayaustin.com/for-exhibitors-2-2/   ____________________________________________________________________   Earth Day, Every Day! Groundwork Dallas – Dallas When: Every Saturday Where: Event locations changing constantly. Click here for location. Time: 9 am – 12 pm Description: Join Groundwork Dallas every Saturday to help protect and clean Dallas! Website: https://greensourcedfw.org/events/groundwork-dallas-parks-cleanup-volunteer-opportunity-dallas-every-saturday   Organize A Litter Cleanup – Fort Worth When: Can be whichever date you choose Where: Can be whichever location you choose Time: Can be whichever time you choose Description: “Keep Fort Worth Beautiful supports volunteers by providing them with trash bags and gloves, which helps in their efforts to clean litter and have a positive impact on their community. KFWB typically provides the following supplies for a standard two-hour cleanup: One bag per adult volunteer One bag per two youth volunteers Gloves for all volunteers Equipment to help any volunteers who are elderly or who have disabilities (available upon request)” Website: Create your littler cleanup here: https://www.fortworthtexas.gov/departments/code-compliance/kfwb/initiatives/litter   San Antonio River Authority – San Antonio When: Can be whichever date you choose Where: Can be whichever location you choose Time: Can be whichever time you choose Description: “Every year, the San Antonio River Authority, City of San Antonio, Bexar County, other governmental agencies, and volunteers pull tons of trash out of area creeks and rivers. A piece of trash you see on the sidewalk in your neighborhood or on the ground at an area park will likely end up in a local waterway. You can help make a difference. Don’t let litter trash your river!” Website: https://www.sariverauthority.org/trash-initiative/volunteer-toolkit   Keep Austin Beautiful – Austin When: The 2nd Saturday of every month Where: Event locations changing constantly Time: Event times changing constantly Description: “We inspire and educate all Austinites to volunteer together, beautify green spaces, clean waterways, and reduce waste every day. Keep Austin Beautiful empowers people to care for the environment by providing community resources, education, and volunteer opportunities.” Website: Must register here per event: https://keepaustinbeautiful.org/volunteer-opportunities/ The post How Can Texans Celebrate Earth Day? appeared first on Allmand Law Firm, PLLC.

When Alex Jones filed bankruptcy for three of his entities holding intellectual property and contract rights, it wasn't immediately clear how these filings would help him resolve his larger legal problems. Now it has unfolded that Mr. Jones is using the bankruptcy filings as a vehicle for removing state court actions against him to federal court.  On April 18, 2022, attorneys for the Debtors removed eight state court lawsuits to U.S. Bankruptcy Court: five in Texas and three in Connecticut. The removed actions are:Adv. No. 22-1021; Pozner, et al v. Jones, et al (Bankr. W.D. Tex.)Adv. No. 22-1022; Fontaine v. Jones, et al (Bankr. W.D. Tex.)Adv. No. 22-1023; Heslin v. Jones, et al (Bankr. W.D. Tex.)Adv. No. 22-1024; Lewis v. Jones, et al (Bankr. W.D. Tex.)Adv. No. 22-6004; Heslin v. InfoW, LLC (Bankr. W.D. Tex.)Adv. No. 22-5004; Lafferty, et al v. Jones, et al (Bankr. D. Conn.)Adv. No. 22-5005; Sherlach v. Jones, et al (Bankr. D. Conn.)Adv. No. 22-5006; Sherlach v. Jones, et al (Bankr. D. Conn.)What the debtors have accomplished in the short run is to derail the pending litigation. Once a case is removed to federal court, it no longer resides in state court and cannot proceed.  This has a benefit to the non-debtor defendants, such as Alex Jones, who also enjoy a temporary reprieve from being sued.Under bankruptcy law, an action may only be removed to the district where the suit was pending.  A collateral consequence of the removals is that Jones-related cases are now pending before four separate bankruptcy judges. Judge Christopher Lopez is the judge over the main bankruptcy cases pending in Victoria, Texas. H. Christopher Mott is the judge for the four cases removed from Travis County, Texas. Judge Michael Parker is the judge over one case that was removed to the Waco Division. Finally, Judge Julie A. Manning is judge over the three cases removed to the Connecticut bankruptcy court.What this means for the constellation of Jones-related litigation is that any pending trials are thrown into limbo. For the debtors, the goal is to move the cases to a more favorable venue and to slow things down while they try to reach a global solution. For the plaintiffs, the goal is to get their litigation back on track and establish that the debtors and their related parties are manipulating the system.  What happens next depends upon the parties. The three judges presiding over the removed cases will likely convene status conferences to determine how to proceed. The Debtors may move to transfer the cases to the district where the main cases are pending. It is almost certain that the plaintiffs' lawyers will ask to have the cases sent back to state court. According to reporting in the Austin American Statesman, in at least one case, the plaintiffs had dismissed out the debtor entity prior to the removal, which would deprive the court of jurisdiction.

Virginia Bankruptcy Exemptions–Update April 2022 “What will they take?”  Your Virginia bankruptcy exemptions answer that question. When you file a Chapter 7 bankruptcy, the Chapter 7 trustee can take and sell your non-exempt assets.  (The proceeds are used to pay your creditors.) Most people don’t have “non-exempt” assets, so the trustee doesn’t take and sell anything.  But […] The post Virginia Bankruptcy Exemptions by Robert Weed appeared first on Northern VA Bankruptcy Lawyer Robert Weed.

  2022 AV Preeminent Attorney - Judicial Edition View online     See My Award Your 2022 AV Preeminent Attorney - Judicial Edition is a testimony to your excellence.  Displaying it lets everyone know. Wall Desk Letterhead Web Site Waiting Area Or call us: 866-964-0866 Congratulations James Shenwick on your selection to 2022 AV Preeminent Attorney - Judicial Edition Martindale-Hubbell has named you in their 2022 AV Preeminent Attorney - Judicial Edition...what an accomplishment. Well Done! Your AV Preeminent Rating® is proof of excellence... a tremendous endorsement by both your peers and the judiciary. Hanging on your wall, placed on your desk, on display in in your waiting area and on your letterhead it's sure to impress... Your awards set you apart from all the competition. They validate. They build confidence and trust. They grow your business! Put them on display now and show your customers just how good you are.

 In a widely misunderstood move, Alex Jones and his legal team have put three of his entities that own intellectual property assets into SubChapter V of Chapter 11. The move, if successful, will protect the domain name, infowars.com, and will delay entry of judgments against Jones personally. The move involves apparent forum shopping and clever use of SubChapter V. The cases are jointly administered under Case. No. 22-60020 in the Southern District of Texas, Victoria Division.Who Are the Debtors?The Debtors are InfoW, LLC, IW Health, LLC and Prison Planet TV, LLC. Contrary to much of the reporting, the InfoWars internet program did not file bankruptcy.  According to early filings in the case,  InfoW, LLC owns copyrights and domain names related to "InfoWars.com," IW Health owns cash flow from royalties from an entity called Youngevity and Prison Planet TV owns copyrights and domain names related to prisonplanet.tv. According to the early filings:"Infowars"--a conspiracy-oriented website and media company--is operated by Free Speech Solutions, LLC ("FSS"), which does business under a registered trademark for that name. InfoW and Prison Planet TV license their intellectual property and domain names to FSS for use in its business but the Debtors do not produce or have any control over the content of Inforwars. FSS maintains and operates the website https://infowars.com. Debtors' Emergency Motion for Order Authorizing Appointment of Russell F. Nelms and Richard S. Schmidt as Trustees of the 2022 Litigation Settlement Trust and Granting Related Relief, para. 8.What Are They Trying to Do? The filings appear to be aimed at taking the intellectual property which makes Infowars.com possible, as well as the revenue from certain health products and protect those assets by funding payments to creditors from a trust created by Jones and FSS. According to a Plan Support Agreement, Jones and FSS have already funded the trusts with $725,000 and agree to contribute an additional $7 million over five years if their reorganization plan is approved. The trustees of the trust will be two retired bankruptcy judges, Richard S. Schmidt and Russell Nelms. A secondary effect of the filings is that a trial scheduled in Travis County District Court for April 25 to assess damages against Jones and others will likely be delayed. It is still possible that the automatic stay will be lifted to allow the case to go forward but the number of days in which that can happen are running out. If the current trial setting is delayed, it just means that the trial will happen at a later date. It doesn't make the case or cases go away. Apparent Forum ShoppingAccording to documents on file with the Texas Secretary of State, the three debtors are located at 3005 S. Lamar, Suite D109 317, Austin, TX 78701 or P.O. Box 19549, Austin, TX 78760. However, when they filed bankruptcy, they told the court that their address was 5606 N. Navarro, Suite 300-W, Victoria, TX 77904.  5606 N. Navarro is an office building in Victoria, Texas.  Victoria is a small city located in South Texas known for its oil and ranching wealth and was an early locus for immigration to Texas.  An internet search shows an Edward D. Jones agent, The Summit Realty Company, a Goosehead Insurance Agent, APS Personnel Services and AmCap Home Loans Mortgage Lender are all located 5606 N. Navarro, Suite 300, but none of them is located at Suite 300-W.  This suggests (although I don't have confirmation for this) that 5606 N. Navarro, Suite 300 is an executive office suite, a place where many businesses can share office space. However, it doesn't answer the question of what connection these debtors have to this address. When a debtor files for bankruptcy in a location different from its home office, this is known as forum shopping. Forum shopping is generally done to obtain a perceived benefit or avoid a perceived detriment. It is hard to see how filing in Victoria, Texas would be an advantage over Austin, Texas. Filing in Victoria assures that the judge appointed to the case would be Judge Christopher Lopez. Judge Lopez is really smart and is a straight shooter. If the case had been filed in Austin, it would have been assigned to Judge Tony Davis or Judge Christopher Mott, both of whom are really smart and are straight shooters. I don't see the benefit in filing in Victoria.. However, there are some really clever lawyers involved in the case and I assume they had a reason. Interesting Issues Under SubChapter V These three cases were filed under SubChapter V, the small business subchapter for reorganization. One feature of SubChapter V is that voting by creditors is much less important. A Plan can be confirmed under SubChapter V even if every creditor votes against the plan. Given that the creditors are all or mostly plaintiffs who are suing Alex Jones in connection with InfoWars, it is hard to see how many of them would have voted for a plan that allows one corner of the Alex Jones empire to remain intact. To qualify for SubChapter V, a debtor or group of debtors cannot have over $2.7 million in debt. However, in making this determination, contingent and unliquidated debts are not included. Since damages have not been awarded in the suits against Jones, et al, all of the litigation debt is likely unliquidated and thus not counted for eligibility purposes.  As a result, the timing of the filings prior to any claims being liquidated was crucial. Of course, being eligible to file does not mean that the debtors will be able to confirm a plan. In another contentious SubChapter V case, a different judge in the Southern District of Texas recently denied confirmation and converted the case to Chapter 7. In re Ozelebi, 2022 Bankr. LEXIS 854 (Bankr. S.D. Tex. 2022). An Impressive Cast of Characters Whatever you think about Alex Jones, these cases will furnish some high stakes legal drama. It is clear (at least to me) that this was a well thought out strategy involving a cast of highly qualified Texas bankruptcy professionals. These include Kyung Lee and R.J. Shannon who represent the debtors, Ray Battaglia who represents FSS and Shelby Jordan who represents Alex Jones.  Bringing in two retired bankruptcy judges, Richard Schmidt and Russell Nelms, to serve as litigation trustees also increases the cases' star power.  These are all household names among the Texas bankruptcy community. They have also brought in Marc Schwartz to serve as Chief Restructuring Officer. A Chief Restructuring Officer or CRO is a role not found in the Bankruptcy Code but one which has been used in cases where existing management needs to step to the side but the parties don't want a full-blown Chapter 11 trustee. The benefit to having a CRO is that Alex Jones can continue to be Alex Jones while a professional restructuring professional runs the cases. Melissa Haselden has been appointed as SubChapter V trustee. The role of a SubChapter V trustee is to attempt to facilitate a consensual reorganization. The role is one closer to a mediator than a conventional trustee. Ms. Haselden will have her work cut out for her. Final Thought (For Now) There is one more interesting aspect to the strategy that I want to discuss. Under the Plan Support Agreement, $725,000 has been funded to the litigation trust so far and an additional $7 million will be funded. Alex Jones and FSS are committed to provide that funding if the plan is confirmed. For this strategy to work, Alex Jones and FSS need to be left with $7 million that they can pay out over five years. However, the plan in these cases, if successful, would only resolve one piece of the larger legal drama. This suggests that the bankruptcy filings here are just the opening gambit in a strategy to reach a larger resolution.Disclaimer:  Everything I have written is based on my review of the initial filings and my knowledge of bankruptcy law. I have not spoken to any of the participants (even though I know many of them) and do not have any insight into what they might be thinking other than what they have put into their filings so far. I don't know what is going to happen here and will be watching with interest to find out.

Financial setbacks can occur to anyone. You may suffer a medical emergency, lose your job, or incur other unforeseen expenses. In these situations, it is easy to get behind on loan payments. When you fall behind on loan payments, you can be at risk of repossession. When you accept a loan from a bank, finance […] The post Property Repossession Laws in Pennsylvania – 2022 Guide appeared first on .