Bankruptcy Law News and Insights

The U.S. House of Representatives Judiciary Committee recently passed legislation that would limit relief available in bankruptcy proceedings.  The legislation, known as the Nondebtor Release Prohibition Act of 2021 ("NRPA"), focuses on protections sometimes extended to "nondebtors" or entities that did not seek bankruptcy protection but are affiliated with a...

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Despite the absence of any explicit directive in the Bankruptcy Code, it is well understood that a debtor must file a chapter 11 petition in good faith. The bankruptcy court can dismiss a bad faith filing "for cause," which has commonly been found to exist in cases where the debtor...

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For creditors dealing with debtors in the shadow of bankruptcy, a common scenario repeats itself.  The creditor repossesses collateral, attaches an account, or sets off a bank account, and then the debtor files a bankruptcy petition. What must the bank or attaching creditor do? Filing a bankruptcy petition automatically halts...

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