August 09, 2023
Till Doesn’t Require Starting with the Prime Rate, Eighth Circuit Says
The Treasury rate and prime rate are both proper starting points for pegging post-petition interest rates, but starting with Treasurys requires a larger risk premium.
8th CircuitJuly 27, 2023
All Future Liability on a Lease Counted for Subchapter V Eligibility
Future liability on a lease was counted as a liquidated, noncontingent debt in calculating whether the Subchapter V debtor had more than $7.5 million in debt.
4th Circuit, Virginia, Virginia Eastern DistrictJuly 11, 2023
Ninth Circuit BAP Holds that Debts of Corporate Sub V Debtors Can’t Be Nondischargeable
Disputing the Fourth Circuit line by line and raising the possibility of a circuit split, the BAP and six bankruptcy courts have held that there’s no such thing as nondischargeability for corporate Sub V debtors.
9th CircuitJune 29, 2023
Eligibility for Subchapter V Is Liberal, but Not Wide Open
Courts are split on whether the debt providing eligibility for Sub V must have arisen from a business that was active on the filing date.
2nd Circuit, New York, New York Northern DistrictJune 01, 2023
Courts Split on Plan Amendments Requiring Substantial, Unanticipated Changes
Eighth Circuit BAP ‘at a minimum’ requires substantial changes in financial condition for a debtor to modify a confirmed chapter 12 plan.
8th CircuitMay 23, 2023
Bankruptcy Judges Agree: Later Developments Don’t Undo Subchapter V Eligibility
The $7.5 million debt cap for Subchapter V doesn’t include the debt of affiliates who file later.
4th Circuit, Virginia, Virginia Western DistrictMay 11, 2023
Student Loans Didn’t Qualify as Commercial Debt for Sub V Eligibility
The business debt necessary to qualify for Subchapter V need not to have arisen from the debtor’s business at the time of filing, Bankruptcy Judge Meier says.
9th Circuit, IdahoApril 20, 2023
Another Court Holds that Debts of Corporate Sub V Debtors Can’t Be Nondischargeable
Contrary to the Fourth Circuit, five bankruptcy courts have now held there’s no such thing as nondischargeability for corporate Sub V debtors. The question is now before the Fifth Circuit.
11th Circuit, Florida, Florida Middle DistrictApril 07, 2023
Later Developments Don’t Undo Subchapter V Eligibility, Houston Judge Says
In the Alex Jones corporate Subchapter V case, Bankruptcy Judge Christopher Lopez said that the later chapter 11 filing by Jones himself, with about $1.5 billion in debt, didn’t kick the corporate debtor out of Subchapter V and into ‘ordinary’ chapter 11.
5th Circuit, Texas, Texas Southern DistrictMarch 13, 2023
It’s Not Easy for a Lender to Block an LLC from Filing Bankruptcy
A small business debtor must consent for a case to be converted to Subchapter V, Judge Robert Jones says.
5th Circuit, Texas, Texas Northern District