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What Are Preferential Payments in Bankruptcy?

Sawin & Shea

Before someone makes a bankruptcy filing, it is not uncommon for debtors to feel as if they have to make some tough decisions. This typically occurs because the debtor doesn’t have the money to pay all of their creditors, so they feel they need to rank which ones are more important to pay first. Which creditors can they pay?

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COVID-19 Related Updates to Bankruptcy Courtroom Policies and Procedures

PBWT

Most bankruptcy courts have altered their practices and procedures in light of COVID-19. Below is a summary of some of the changes to practices and procedures in the United States Bankruptcy Courts for the Southern District of New York, the Eastern District of New York, and the District of Delaware. phone call or email).

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Affordable Care Act’s Shared Responsibility Payment is a Tax Entitled to Priority

ABI

1] In In re Szczyporski, the United States Court of Appeals for the Third Circuit held that the shared responsibility payment is a tax entitled to priority under Title 11 of the United States Code (the “Bankruptcy Code”). [2] 3] The IRS filed a proof of claim against the Debtors for unpaid taxes and interest, including a $927.00