The Supreme Court is currently considering the case of Wellness International Network, Ltd. v. Shariff. As discussed in the blog post on February 16, 2015, at issue in the Wellness International Network case is “whether Article III of the United States Constitution permits the exercise of judicial powers of the United States by the bankruptcy […]
Litigant Consent and the Power of the Bankruptcy Court
Do You Know What is in Your Buyer’s Wallet?
In a recent ruling, the Ninth Circuit held that a seller was liable under the law of fraudulent conveyance to the bankruptcy trustee for the portion of the purchase price funded by a company controlled by the buyer, which was actually a Ponzi scheme, that later filed bankruptcy. Mano-Y&M Ltd. v. Field (In re Mortgage […]
The “B” Word – Asserting Your Claim in the Wake of a Bankruptcy Filing: Proof of Claim Basics
The word “bankruptcy” often strikes dread in the hearts of creditors. To some, when they hear that someone who owes them money has filed bankruptcy, they envision writing off the debt and never receiving a cent. However, all is not necessarily lost when a customer files bankruptcy. There are some steps you can take to […]
It Matters Whether an Agreement is “Executory”
A recent decision by the full contingent of judges from the Eighth Circuit Court of Appeals (covering seven Midwest states) demonstrates that a common bankruptcy term should be added to your vocabulary. That term is “executory.” To learn more, click on the link below to an article recently published by the online news site Hotel […]
Tenants Beware: Your Landlord’s Bankruptcy Could Result in a Lost Lease
It is unfortunate, but true: a commercial tenant may someday be required to deal with a bankrupt landlord. Any bankruptcy filing can be complicated and chaotic. But, a tenant faced with a landlord’s is more than just a creditor who is working to get paid. The tenant must closely monitor the landlord’s bankruptcy case to […]
Closing the Gap: The Supreme Court Holds that Bankruptcy Courts Should Enter Proposed Findings of Fact and Conclusions of Law for Stern Claims
On June 9, 2014, while the Bankruptcy Bar waited with bated breath, Justice Thomas delivered the long-anticipated opinion of the unanimous Court in Executive Benefits Insurance Agency v. Arkinson. While the Supreme Court answered the question of how to proceed when confronted with a Stern claim, it left the question of consent “for another day.” […]
5th Circuit Bankruptcy Summary: In re Mark Alan Frost, No. 12-50811 (5th Cir. March 5, 2014)
Debtor Mark Alan Frost filed bankruptcy, claimed his homestead as exempt and then sold it. Texas law provides that, to maintain homestead protection, a homeowner must reinvest sale proceeds in another homestead within six months. Frost failed to do that. The Bankruptcy Court held that the funds therefore were non-exempt and should be returned to […]
Farmer Favoritism: Statutory Protections for Creditors in Agricultural Bankruptcy Cases
Jason Binford and I recently published an article in the Texas Tech Law Review entitled, Farmer Favoritism: Statutory Protections for Creditors in Agricultural Bankruptcy Cases. The article discusses several different types of special interest statutes that could allow particular creditors to recover on their claim ahead of other creditors. Parties in bankruptcy cases without an understanding […]
Good News for Creditors: Preferred Treatment of Trade Claims Incurred in the 20 Days Before Bankruptcy
When a company files bankruptcy, trade creditors are frequently left in financially vulnerable positions. Trade creditors are generally unsecured, and frequently receive only pennies on the dollar from bankrupt debtors’ estates. We are frequently asked whether trade creditors have any recourse against a debtor to improve their likelihood of recovery. One of our first questions […]