Small Business

Delaware Judge Sets the Standards for Nondebtor Releases Following Purdue

Nondebtor releases are valid whether the creditor votes for or against the plan, as long as notice to opt out was clear and conspicuous.

Bankruptcy Fraud: Still a Threat to the Bankruptcy Process

Jan 2025

When Will I Get Paid? Unpaid Post-Petition Rent and Subchapter V

Subchapter V presents interesting challenges for landlords, including increased uncertainty regarding the timing of payments. Specifically, 11 U.S.C. § 1191(e) allows certain debtors to extend the payment of administrative claims over three to five years, rather than requiring payment of all administrative claims in full upon the effective date of a plan. [1] Currently, no precedent exists on whether a debtor can extend its payment of post-petition rent as an administrative expense under 11 U.S.C.

Sub V Trustee May Be Discharged When the Debtor Makes Plan Payments

Bankruptcy Judge Larson administratively closed a Sub V case after substantial consummation.

Chapter 11 Plan May Impair a Mortgage When the Debtor Is Not Liable on the Debt

A chapter 11 plan may not impair the rights of a mortgage lender against a co-owner who is not in bankruptcy.

Hot Topics in Subchapter V and Consumer Bankruptcy Cases