Plan Confirmation

Another Circuit Upholds the 2018 Increase in U.S. Trustee Fees

Dissenters in the Fourth and Fifth Circuits evidently believe that the dual U.S. Trustee/Bankruptcy Administrator system is unconstitutional.

Business Bankruptcy Legal Update

Corporations Are More Likely Eligible for the SBRA than Owners of Defunct Businesses

Utah’s Judge Thurman says that a corporation liquidating its remaining assets is engaged in business ‘activities’ and is therefore eligible for Subchapter V.

Faulty Pleading Resulted in Dismissal of a Suit by an ‘Unknown’ Creditor

Third Circuit dicta suggests that failure to create a trust is constitutionally deficient and won’t discharge claims of ‘unknown’ creditors in a chapter 11 plan.

Denver Judge Opens the SBRA Door Wide for People with Debt from Failed Companies

A fast-food worker can (conceivably) qualify as a small business debtor under Subchapter V, according to Bankruptcy Judge Thomas B. McNamara.

A District Court Rules that the U.S. Trustee Fee Increase Isn’t Retroactive

California district judge sides with the dissenter in the Fifth Circuit in saying that the parallel systems of U.S. Trustees and Bankruptcy Administrators violates the Bankruptcy Clause of the Constitution.

A Bird in the Hand Is Worth Two on the Effective Date

June 2021

Deeply Subordinated Creditor Barred from Voting or Objecting to Plan Confirmation

Subordination agreement did not transfer voting rights, but prudential standing nevertheless barred the subordinated creditor from participating in confirmation, Judge Somers says.