Asset Sales

Chapter 13 Creditors Get Exempt Assets that Produce Income

Exempt assets are included in the calculation of chapter 13 projected disposable income to the extent that the exempt asset produces income.

Top Cases/Decisions

Rochester Diocese Loses Stay Protection for Nondebtor Catholic Entities

After almost three years in chapter 11 without a consensual plan, Bankruptcy Judge Warren is allowing sexual abuse claimants to sue nondebtor parishes and schools.

Bidding Not Always Required When a Settlement Includes a Sale of Assets, BAP Says

If there are mutual claims, the Ninth Circuit BAP gives the court discretion not to evaluate a settlement as a sale.

The Rise of “Reverse” Vesting Orders in the Canadian Insolvency Regime

Maximizing value for creditors is one of the paramount objectives of the Canadian insolvency system. Where the value is in a business varies in each situation. Depending on the nature of the business, a debtor company may have crucial licenses or contracts that are not transferrable but are necessary in order to operate. In another example, an entity may have significant tax losses that may be a driver of value, but the path to a successful plan of arrangement is uncertain or the debtor has insufficient resources to pursue a plan of arrangement in Canada.