Small Business

BAP Upholds Confirmation of a Plan with No Trust for Future Asbestos Claimants

Ninth Circuit BAP confirmed a plan with no future creditors’ trust when the debtor claimed there were no future claims and no one was in court representing future claimants.

No Stay Pending Appeal on Nondebtor Opt-Out Releases in a Chapter 11 Plan

The debtor agreed not to raise equitable mootness on an appeal only challenging nondebtor opt-out releases.

Two Courts Hold: Injunctions Are Ok to Protect Nondebtors for the Life of a Plan

Judge Meredith Grabill of New Orleans agreed with New York’s Judge Mastando that a Subchapter V plan can enjoin lawsuits against nondebtors for the life of a three-year plan.

July 2025

A Chapter 11 Debtor May Sometimes Prosecute an Appeal After Conversion to Chapter 7

After conversion, the debtor was entitled to prosecute an appeal at the debtor’s expense when the appeal involved the debtor’s personal liability.

Post-Petition or ‘Evergreen’ Retainers Are Permissible in Subchapter V, Judge Isicoff Says

A Sub V case was not of a ‘size or exceptional nature’ to justify a post-petition retainer when counsel could file interim fee applications.

A Homeowners’ Association Is Not a ‘SARE’ and Is Eligible for Sub V of Chapter 11

A homeowners’ association is not a single asset real estate debtor because the HOA’s income doesn’t come from the common areas but from assessments paid by unit owners.