Bankruptcy Law News and Insights

In prior client alerts, we have explained to non-lawyers the dual nature of our judicial system as both courts of law and equity.1 The origin of this duality dates back to chancery courts in the middle ages where the church presided over certain matters. In some states, the distinction is still...

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The introduction in 2020 of subchapter V for small business chapter 11 cases was the biggest structural reform in business bankruptcies since the enactment of the Bankruptcy Code in 1978. Subchapter V was enacted in 2019 as part of the Small Business Reorganization Act and became effective in February 2020....

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1. AUTOMATIC STAY 1.1 Covered Activities 1.1.a Taggart v. Lorenzen standard applies to stay violation in a corporate case. The debtor sold assets prepetition. After the petition date, the buyer demanded payment of certain working capital adjustments provided under the purchase agreement. The automatic stay prohibits any act to collect or recover a...

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