The Bankruptcy Code allows bankruptcy trustees, debtors in possession, and official committees to hire attorneys, accountants, and other professionals to assist them in carrying out their statutory duties, with their fees to be paid by the bankruptcy estate. However, to get paid, these professionals must obtain approval from the bankruptcy court. But what happens when […]
Working for Free: Supreme Court Holds that Fees Incurred Defending Fee Application are not Recoverable
Trademark Licensor Rights Trump Bankrupt Licensee
While Donald Trump’s presidential aspirations and “Celebrity Apprentice” hosting duties make for interesting copy, the most recent news concerning him relates to the bankruptcy case of Trump Entertainment and the interaction between bankruptcy and trademark law. To learn more, click on the link below to an article recently published by the online news site Hotel […]
STRUCTURED DISMISSALS – HOW THEY WORK PART III: THE BEST INTERESTS OF THE CREDITORS TEST
A. Where We Left Off Part II of this series focused on the first element of section 1112(b)’s dismissal test: whether “cause” exists for the court to dismiss or convert the case. Once the judge determines that cause exists, the court must dismiss or convert the case. As a result, a party seeking the approval […]
Litigant Consent and the Power of the Bankruptcy Court
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 […]
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 […]