Another Bankruptcy Court Weighs in on Postpetition Interest

PBWT

2] In this case, unsecured creditors argued that they were “impaired” because the plan did not require the debtor to pay postpetition interest at the contractual rate or a higher state law judgment rate. [3]

Section 1126 of the Bankruptcy Code and the Dangers of Sleeping on Your Rights as a Creditor

PBWT

This is especially true if you’re a creditor in a chapter 11 case. Two mortgage companies held more than $800,000 in secured claims, and 33 creditors had unsecured claims totaling about $1.1 Just seven unsecured creditors voted on the plan, all in favor.

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Sixth Circuit Rules that Monthly 401(k) Contributions can be Excluded from “Projected Disposable Income” Under a Chapter 13 Plan

Foster Swift

A Chapter 13 bankruptcy plan requires a debtor to satisfy unsecured debts by paying all “projected disposable income” to unsecured creditors over a five-year period.

What Are Debentures? Everything You Need To Know

Hudson Weir

In the case of insolvency or liquidation, a floating charge would give the lender priority over unsecured creditors in the order of repayment. Preferential creditors are next, including employees owed arrears of wages and holiday pay.

Five Burr Attorneys Named to Lawdragon’s 2022 “500 Leading Bankruptcy & Restructuring Lawyers” List

Burr Forman

In addition, he serves as the Atlanta Office Managing Partner while practicing in the firm’s Creditors’ Rights and Bankruptcy and Lending Practice Groups. Hall was named in the Bankruptcy & Creditors’ Rights, including Litigation specialty.

Failed Private School was owed £51k in Unpaid School Fees

UK debt collections

The church run Ockbrook School owed creditors more than £2 million pounds when it was forced to closes its doors due to financial issues this summer. The School has over 140 creditors listed and administrators have warned they may never get what they are owed.

Putting Personal Money Into A Limited Company: What You Should Know

Hudson Weir

When businesses do enter liquidation, by putting personal money into a limited company, if director’s loan accounts are in credit, then the directors count as creditors. Be aware though, that they are classed as unsecured creditors.

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

PBWT

Unsecured Creditors Committee et al. , Bankruptcy Court for the District of New Mexico confirmed a plan that had been proposed by the unsecured creditors' committee.

Chapter 13 Bankruptcy and Student Loans

Sawin & Shea

This stay prohibits creditors, including your student loan lenders, from contacting you to collect any debts. Reduces payment amounts: Amounts paid to your student loans and other unsecured creditors will often be significantly lower through a Chapter 13 bankruptcy.

Crypto Exchange Platforms Grapple with Consequence of Filing Bankruptcy

PBWT

Since companies facing bankruptcy usually try to keep an anticipated filing quiet in order to prevent creditors from taking adverse actions, customers may unexpectedly lose control over their crypto assets.

What Is Nonexempt Property In Bankruptcy, And Why Does It Matter?

Debt Free Colorado

They then exercise control over the merchandise sold to satisfy creditors. They will sell them and use the revenues to pay for the bankruptcy’s fees , charges, and expenditures before paying creditors. ” The Trustee has the authority to seize and liquidate non-exempt property to benefit creditors. Additionally, creditors may take such property if a judgement against the debtor is entered. You’ve undoubtedly heard of bankruptcy.

What Happens to Investment Real Estate in Bankruptcy?

Sawin & Shea

The process involves liquidating non-exempt assets property to pay creditors. You can surrender the property to creditors and discharge the debt associated with the investment property. Filing for bankruptcy is an important step for many individuals looking to overcome debts.

Ex TV Channel boss banned from being a Company Director

UK debt collections

But five unsecured creditors – owed a total of £347,860 – are unlikely to see the return of any of their money. A Plymouth based businessman has been banned from being a company director for eight years.

Cutting through the insolvency paperwork jargon – A guest blog by Menzies LLP

CICM

In this week’s guest blog, the Menzies LLP Creditor Services team highlight the areas you should be looking for on receipt of insolvency paperwork and, most importantly, whether there will be a dividend. The priority of payments in a company insolvency determines where creditors rank in terms of likely return. Below is a non-exhaustive list of priority: Secured creditors – with a fixed charge. Secondary preferential creditors – some HMRC arrears. Unsecured creditors.

The Return of the Crown Preference – A blog by Menzies

CICM

The Enterprise Act 2002 came along, and we saw this abolished and replaced with the Prescribed Part – a pot of money ring fenced for the unsecured creditors. This was a redistribution of the wealth as it meant HMRC’s debt became ‘unsecured’ like everyone else, but they still got a return from floating charge assets. At the same time, it was seen as fairer because all the other unsecured creditors also received a slice. A long, long time ago….

Burr & Forman Expands Across the Southeast with Addition of Five Attorney

Burr Forman

Burgess joins the firm’s Orlando, FL office as Associate in the Creditors’ Rights & Bankruptcy practice group. Burr & Forman LLP is pleased to announce the addition of Andrew T. Spence, Rita M. Mairs, Andrew T. Petrey, Kelsey E. Burgess, and Kate A. Hamilton. Andrew T.

As Chapter 11 Bankruptcy Filings Surge, Here’s What Creditors Need to Know to Protect and Enforce Their Rights

Fraser

Creditors of a bankrupt company must be aware of the various deadlines and procedures that govern the chapter 11 process in order to protect and enforce their rights. For creditors to maximize their recoveries, they must stay informed and take action during a bankruptcy proceeding.

Recent Decision on Derivative Standing by a Creditors’ Committee to Challenge a Lender’s Liens

PBWT

In many chapter 11 cases, creditors’ committees can play a vital role in maximizing the recoveries of unsecured creditors. But the powers of creditors’ committees are circumscribed by both the Bankruptcy Code and case law.

HMRC facing £65bn Debt Collection challenge

UK debt collections

The position is further complicated as from 1 December 2020 HMRC is now treated as a preferential creditor in any insolvency , meaning it is entitled to be paid ahead of unsecured creditors and floating charge lenders.

Bankruptcy Chapter 7 vs 13: Which Is The Best Option?

Debt Free Colorado

Consider your income, assets, creditors, expenditures, and your ability to pass the means test while selecting between Chapter 13 and Chapter 7. Creditors are prohibited from contacting you after your petition is filed. While bankruptcy law forces you to sell some assets to repay unsecured creditors, the majority of Americans keep all of their property because of bankruptcy limits on the categories of assets that may be used to settle debts.

Debtor Allowed to Make Voluntary Contributions to Retirement Fund While Repaying Creditors

ABI

American Bankruptcy Institute Law Review Staff. . In In re Marlena Joy Pizzo , the United States Bankruptcy Court for the District of South Carolina held that a debtor may voluntarily contribute to her retirement plan while paying creditors under a bankruptcy plan. [1] Siegan, an unsecured creditor, objected to the plan arguing that Pizzo should be required to pay creditors in full before being allowed to fund her retirement plan. [2] Jennifer Hepner.

Will Bankruptcy Erase ALL of My Debt?

Sawin & Shea

There are exemptions depending on the property and how essential it is, but anything considered nonexempt will likely be sold to help pay off your creditors. That money will go to your Chapter 13 trustee, who will then distribute it amongst your creditors.

Losing Momentum:  Houston Bankruptcy Court Holds that Make-Whole Claims are Not the Economic Equivalent of Unmatured Interest Subject to Disallowance; Solvent-Debtor Exception Lives

PBWT

2] The Fifth Circuit also instructed Judge Isgur to determine whether the creditors were entitled to post-petition interest at the contractual default rates under the “solvent-debtor” exception. [3]

What Should Construction Contractors Do When a Property Owner Files For Bankruptcy?

Jimerson Firm

When a property owner files for bankruptcy, a “Notice of Commencement of Case” will be sent to all creditors listed in the owner’s bankruptcy petition to let them know that the bankruptcy has been filed and to provide deadlines for key events in the bankruptcy.

Critical Vendors Aren’t Immune from Lawsuits to Recover Preferential Transfers

PBWT

Accordingly, critical vendors often recover more on their pre-petition claims than other unsecured creditors. In other words, critical vendors could receive a full recovery, while other creditors only receive a fraction of what they are owed.

Dealing With Debt From COVID-19

Debt Free Colorado

Below you’ll find some strategies for working with your creditors and deciding which bills are the most important if you can’t pay them all. Reach out to your creditors. How do I pay my Bills if I’m out of Work due to a Stay-At-Home Order?

A Primer On Administrative Expense Claims From An Oil And Gas Bankruptcy Case

PBWT

Some of Whistlers’ creditors also filed an involuntary chapter 11 petition against Whistler. The claim drew objections from Whistler, one of its secured creditors, and the unsecured creditors’ committee.

What Are Preference Shares During Insolvency?

Hudson Weir

The next steps for an insolvent company working with an IP could include entering into administration, a company voluntary arrangement (CVA) or a creditors’ voluntary liquidation (CVL). The first priority is to repay all secured creditors, unsecured creditors and preferential creditors.

Can I Put My Property in My Spouse’s Name and File for Bankruptcy?

Sawin & Shea

In most cases, a judge will reverse the transfer, especially if it is apparent that it was done to evade creditors. If the property is taken, the trustee responsible for selling the property to pay your creditors will pay your spouse the value of their interest in the property.

Can I Put My Property in My Spouse’s Name and File for Bankruptcy?

Sawin & Shea

In most cases, a judge will reverse the transfer, especially if it is apparent that it was done to evade creditors. If the property is taken, the trustee responsible for selling the property to pay your creditors will pay your spouse the value of their interest in the property.

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

PBWT

The debtor’s motion to dismiss drew creditor opposition. With respect to the DIP loan, the debtor noted that as an unsecured creditor, RT was in the same position as if the debtor had a secured loan outside of bankruptcy.

All in a Day’s Work. Belk Achieves Confirmation of Pre-Packaged Plan in Record Time

PBWT

” [1] Critically, the plan leaves all unsecured creditors unimpaired. We posit a few of those here: Broad Creditor Support. Leaving trade creditors unimpaired, while not legally required, is an essential pragmatic consideration.

Court May Dismiss a Chapter 11 Case Filed in Bad Faith

ABI

4] The NRA argued that bankruptcy was necessary to consolidate litigation filed against it and to facilitate a reorganization plan that could pay its creditors and allow the NRA to exit Chapter 11 as a Texas non-profit. [5]. of Unsecured Creditors v. By: Nicholas Wogan. John’s University School of Law.

Pre Pack Administration: What It Involves And How To Do It

Hudson Weir

In some cases, a company voluntary arrangement (CVA) or creditors’ voluntary liquidation (CVL) may be a better option. For a pre pack administration to take place, the procedure must be in the best interests of the company and its creditors. This preserves funds for the creditors.

Equitable Mootness on the Ropes

PBWT

It argued that the plan unfairly discriminates among the same class of shareholders, violates the absolute priority rule, was proposed in bad faith, is not in the best interests of the creditors, and is not feasible. Of the $12 million paid under the Plan to creditors [.