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Second Circuit Declines Class Certification to Debtors Seeking to Hold Creditor in Contempt of Discharge Injunction

ABI

John’s University School of Law American Bankruptcy Institute Law Review Staff A bankruptcy discharge order absolves debtors of their pre-bankruptcy debts and seeks to provide debtors with a fresh start to their financial life. 2023); 11 U.S.C. § Citigroup, the Second Circuit held Citigroup Inc. 1] Bruce v. Citigroup Inc.,

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Court Dismisses Bankruptcy Case to Enable Debtor to Seek a Paycheck Protection Loan

PBWT

It is well known in the restructuring world that a debtor in bankruptcy can’t get a PPP loan. But what if you’re a debtor and decide a PPP loan could save your business? The issue arose recently where a chapter 11 debtor already had DIP financing in place. The debtor is an event design company.

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A US Court May Recognize a Foreign Proceeding of an Entity Who Would Not be Considered a Debtor in the U.S.

ABI

In In re Barnet , the United States Court of Appeals for the Second Circuit held that a foreign debtor must satisfy traditional debtor eligibility requirements for a debtor’s foreign proceeding to be recognized under Chapter 15 of Title 11 of the United States Code (the “Bankruptcy Code”). [1] 1] In re Al Zawawi, No.

Debtor 40
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Debtors do not have the Burden to Prove Section 523(a)(8) applies to their Loans

ABI

American Bankruptcy Institute Law Review Staff. . Section 523 of Title 11 of the United States Code (the “Bankruptcy Code”) generally provides that a student loan cannot be discharged unless it would impose “undue hardship” on the debtor. [1] 1] See 11 U.S.C. § 11] See id at *1. [12] 14] See 11 U.S.C. §

Debtor 40
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The Final Say: Conversion from Chapter 11 to Chapter 7 is Not a Given

PBWT

It is well-settled that if you are a debtor in chapter 11, you do not have the unfettered right to convert the case to a chapter 7 liquidation. The debtor had married into a family that owned real estate assets in New Mexico, Colorado and Arizona and lived off income from two spendthrift trusts formed by his late wife.

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Can a Lender Pursue Debt Collection After a Charge Off and 1099-C Issuance?

Jimerson Firm

Generally, if debtors owe a debt to a lender, and the lender cancels or forgives that debt for less than its full amount, the debtor is treated for income tax purposes as having income and may have to pay tax on this income by virtue of a 1099-C filing from the lender. 1:11–cv–72, 2012 WL 1098619, at *7 (W.D.N.C. Bank of Am. ,

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Luxurious Lifestyles Can Undermine the Good Faith Requirement for ?Proposed Chapter 11 Plans of Reorganization

ABI

Luxurious lifestyles alone do not violate the good faith requirement for proposing a plan of reorganization under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). 1] The debtor was a physician who earned approximately $400,000 per year. [2] 11] The plan was ultimately confirmed by the court. [12].