General

“Special Circumstances” did not Save a 12 Year Old Involuntary Case

In Popular Auto, Inc. v. Reyes-Colon (In re Reyes-Colon), Nos. 17-1971, 17-1972, 2019 WL 1785039 (1st Cir. April 24, 2019), the First Circuit recently ruled that “special circumstances” does not authorize a bankruptcy court to use its equitable powers to contravene the numerosity… Read More ›

Retailers Beware: Santa Claus is Making a Come Back

Many of us were raised to believe that Santa Claus delivers our gifts before we wake up on Christmas Day.  If you believe, behave, and send your wish list on time, you are virtually certain to receive what you want… Read More ›

Creditors with Partially Disputed Claims Have Standing to File an Involuntary Bankruptcy

Section 303 of the Bankruptcy Code provides a unique remedy to unsecured creditors seeking to collect their debts against an insolvent entity.  A careful look at this remedy is contained in an earlier post, entitled Creditors’ Strategic Use of Involuntary Bankruptcy. … Read More ›

Single Asset Real Estate Case Dismissed for “Bad Faith” Under Fourth Circuit Precedent

In In re Fairfield TIC, LLC, Case No. 18-73744-VJ (Bankr. E.D. Va. Nov. 20, 2018), the Bankruptcy Court for the Eastern District of Virginia dismissed a single asset real estate case, pursuant to section 1112(b) of the Bankruptcy Code, on… Read More ›

Valuation of Assets in Business Bankruptcies

Valuation Generally The valuation of assets plays a central role in most business bankruptcies.  Among other things, a proponent of a chapter 11 plan must establish an accurate value of the debtor’s business, as such valuation is often tied to distributions to creditors, who are… Read More ›

History of Bankruptcy Laws in the U.S.

The notion of being insolvent or being bankrupt dates back numerous centuries. In Ancient Greece, where bankruptcy did not exist, if a man owed a debt and he could not pay, he and his wife, children or servants were forced… Read More ›