ABI Blog Exchange

The Chapter 13 Trustee Will Have Objections

Let’s schedule a meeting now. We know the Trustee will object. When your Zoom meeting with Thomas Gorman is over, he’ll go back to his desk and send us his objections to our Chapter 13 plan. He always does. Chapter 13 Trustee Thomas Gorman will have

Groundbreaking decision has been made by the FTC. The FTC issued a final rule banning non-compete agreements for workers.

By: Mary Shahverdian On April 23, 2024, The Federal Trade Commission (“FTC) issued a final rule banning non-compete agreements for workers. The final rule defines a “non-compete” clause or agreement as … The post Groundbreaking decision has been made

Sub V Task Force Report In A Nutshell: Part 1—Background

By: Donald L Swanson On April 23, 2024, the American Bankruptcy Institute’s Subchapter V Task Force issued its Final Report. This article is the first in a series that summarizes and condenses the Task Force’s Final Report into “a nutshell.” This

Interspousal claims defy the Chapter 7 discharge

Even when the contentions against a debtor-spouse sound in fraud, breach of fiduciary duty, or intentional tort, the claims of the debtor’s spouse survive a Chapter 7 discharge. Without the necessity of a timely adversary proceeding So held the 9th

What is the Sheriff’s Sale Process in New Jersey?

In New Jersey, after a mortgage lender has obtained a final foreclosure judgment, they can schedule a Sheriff’s Sale of the property. It is important to know that the Sheriff’s Sale won’t happen immediately because there is a specific process that

Sneak Attack On Consumer Rights

Tax code changes effective in 2018 inflicted a crippling blow to consumers who must sue to enforce their rights.  And few have yet noticed. The tax deduction for miscellaneous itemized deductions under IRC Section 212 is gone. So now, consumers who

Parties Beware—Noncompliance with Delaware ABC Statute Can Lead to Serious Consequences (US)

Last month the Delaware Chancery Court sent a clear message to Delaware companies that failure to strictly comply with the Delaware Assignment for the Benefit of Creditors (“ABC”) statute will result in severe consequences, including dismissal. On

Are Certificates Of Deposit Exempt In Arizona Bankruptcy?

Are Certificates Of Deposit Exempt In Arizona Bankruptcy? The market has been volatile since the pandemic, and people are looking for safe and secure ways to invest their money without the fear of losing their principal. A certificate of deposit, or

April 2024 Ponzi Scheme Roundup

Below is a summary of Ponzi scheme activity reported for April 2024. There were at least 13 new Ponzi schemes revealed this month. Ponzi schemers received more than 25 years of prison sentences. The average age of the fraudsters was about 52 years

Study: Offering And Advocating For A Solution Is A Poor Mediator Strategy

By: Donald L Swanson “ Neutral Offering Solutions had long-term negative associations” in mediation. That’s a finding from a study of small claims mediations, titled “What Works” [Fn. 1] “Neutral Offering Solutions” refers to a mediator offering

(UK) What practical changes can IPs expect from the proposed amendments to FCA guidance?

The UK Financial Conduct Authority (FCA has issued a consultation about proposed changes to its Guidance for Insolvency Practitioners. The aim is to clarify existing guidance and provide more information to insolvency practitioners (IPs) on how to

Weekly News – April 26

vulture investors beware, Express to BK, Venny default on horizon, McKinsey on firing line, Adler chpt 22, DISH bondholders sue, and much, much more… ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏

Valuing Your Clothes and Furniture on Your Bankruptcy Papers

“You mean to tell me you don’t have any underwear!” When I was much younger, I practiced bankruptcy law in Baltimore City. Judge Kiser, the bankruptcy judge, made people inventory their underwear. Today, the bankruptcy court in Alexandria Virginia

Valuing Your Clothes and Furniture on Your Bankruptcy Papers

“You mean to tell me you don’t have any underwear!” When I was much younger, I practiced bankruptcy law in Baltimore City. Judge Kiser, the bankruptcy judge, made people inventory their underwear. Today, the bankruptcy court in Alexandria Virginia

Can Debtor’s Subchapter V Counsel Be Paid For Services Performed After Removal of Debtor From Possession? (In re Sunergy, In re Pro-Snax, Etc.)

By: Donald L Swanson Debtor’s Chapter 11 counsel cannot be compensated for services performed after a trustee is appointed and the debtor removed from possession. That’s the rule of law in the Fifth Circuit and in a not-for-publication decision of

Law Review: Kilborn, Jason J., The 'Market Model' of Debt Counseling and Bankruptcy in the United States (March 1, 2024)

Law Review: Kilborn, Jason J., The 'Market Model' of Debt Counseling and Bankruptcy in the United States (March 1, 2024) Ed Boltz Wed, 04/24/2024 - 18:21 Available at SSRN: https://ssrn.com/abstract=4752879 Abstract: This paper is a chapter in a

Subchapter V Debt Limit: Don’t Get Caught Assuming Congress Will Act (It Probably Will…But Still) (US)

In my most recent blog post, I provided some tips for creditors who find themselves in the Subchapter V arena. This is somewhat of a follow-up to that one. There is a general consensus that Subchapter V has been successful for debtors in smaller

Research Paper: Lee, Brian Jonghwan, Bankruptcy Lawyers and Credit Recovery (April, 2024). FRB of Philadelphia Working Paper No. 24-10,

Research Paper: Lee, Brian Jonghwan, Bankruptcy Lawyers and Credit Recovery (April, 2024). FRB of Philadelphia Working Paper No. 24-10, Ed Boltz Tue, 04/23/2024 - 16:20 Available at SSRN: https://ssrn.com/abstract=4788212 or http://dx.doi.org/10

A Dilemma In Mass Tort Bankruptcies: Maximizing Value v. Wreaking Vengeance (In re Bestwall)

By: Donald L Swanson Bankruptcies with large tort claims are common: some involve a limited number of claimants ( e.g., a drunk driver hits a bus or a restaurant serves bad food one evening); and others have large numbers of claimants, some of whom

ABI’s Subchapter V Task Force Releases Final Report on Subchapter V Recommendations