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With the enactment of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) came numerous amendments to the U.S. Bankruptcy Code. Of great significance was the inclusion of a calculation of monthly income required for individual consumer debtors to determine their eligibility for relief under chapter 7 of the Bankruptcy Code, commonly referred to as the “means test,” and provided for in 11 U.S.C. § 707(b)(2)(A) and (B).
The Ethics and Professional Compensation Committee had a tremendous 2023! We strived to continue to provide our members with enlightening and useful substantive information, while also offering enjoyable and valuable social and networking opportunities.
During 2023, our committee offered a wide variety of opportunities for ABI members to learn about timely and interesting issues facing professionals in the bankruptcy arena.
The Small Business Reorganization Act of 2019, also known as SBRA (Pub. L. No. 116-54), became effective on Feb. 19, 2020. This legislation allows a small business debtor to choose, during the filing process, to proceed under subchapter V within chapter 11.
Increasingly, consumer bankruptcy lawyers will be using AI in the future. It therefore is incumbent upon them to develop procedures and policies for its use and in billing for such services. Doing so will be a combination of art and science controlled by both ethical and practical considerations. Because its use is in an embryotic phase, standards are still being developed, and the area is plagued by a dearth of both case law and statutory guidelines. Practitioners also have to be cognizant that AI is a rapidly and ever-changing tool characterized by advances made on a constant basis.
Due process is a fundamental right, reiterated in the foundational documents of the U.S. [2] All lawyers are taught and tested on the requirements of due process, both in a procedural and substantive context. As a review, “procedural due process” requires that the deprivation of life, liberty or property by adjudication be preceded by notice and opportunity for hearing appropriate to the nature of the case. [3]
On April 17, 2023, the Fifth Circuit issued a decision that demonstrated considerable deference to the bankruptcy court’s determination that a senior lender affiliated with the debtor remained a “good faith purchaser” when submitting a credit bid to purchase the debtor’s real property. [2]
