bankruptcy

Ten Years Gone – Delaware Bankruptcy Judge Rejects Effort to Extend Lookback Period for Avoidance of Pre-Bankruptcy Transfers

04/20/22

A recent decision by Delaware Bankruptcy Judge John Dorsey will limit the ability of bankruptcy trustees to expand the lookback period for avoiding pre-bankruptcy transfers beyond the four years provided under most state law fraudulent conveyance statutes.  In dismissing a trustee’s action to recover transfers made more than four years prior to the commencement of the bankruptcy case, Judge Dorsey rejected the trustee’s effort pursuant to

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Second Circuit Split Resolved: No PPP Loans for Debtors in Bankruptcy

04/11/22

In March, the U.S. Court of Appeals for the Second Circuit joined a growing majority of courts with Springfield Hospital, Inc. v. Administrator for the U.S.

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Preoccupied Congress Fails to Act, Sending Debt Limit Back Down to $2.7 Million and Reducing Availability of Subchapter V Protection for Small Businesses

03/30/22

For now, the Subchapter V debt limit is back down to $2.7 million.  Overshadowed by the contentious confirmation hearings for historic Supreme Court nominee Ketanji Brown Jackson, the Senate Judiciary Committee failed to act on proposed legislation that would have made permanent the increased $7.5 million debt limit and allowed more small businesses to file for bankruptcy protection under Subchapter V of Chapter 11.  Because of this congressional inaction, the legislation that temporarily increased the debt limit to $7.5 million expired on March 27, 2022.

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$7.5 Million Increased Debt Limit For Small Business Debtors May Become Permanent

03/17/22

The law that temporarily increased the maximum amount of debt a company may have to qualify as a small business under Subchapter V – the cheaper, easier, and faster version of Chapter 11 – from $2.7 million to $7.5 million, is about to expire.  A bill introduced in the Senate this week by a bipartisan group of senators led by Senator Chuck Grassley (R-Iowa), however, would make the $7.5 million debt limit permanent.

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District Court Upholds Georgia Bankruptcy Court’s Restrictions On Chapter 7 Trustee Attorneys’ Fees

03/15/22

In this lengthy post, we discuss Judge Paul Bonapfel’s 73-page Order in which he skewered the fee application of a Chapter 7 Trustee and effectively changed the way all judges in the Northern District of Georgia view fee applications for Trustees’ counsel. In re McConnell, Case No. 19-67128-pwb, 2021 WL 203331 (Bankr. N.D.Ga.

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Eleventh Circuit Addresses Deadlines to Appeal Order of District Court (when Acting as Bankruptcy Appellate Court) to Court of Appeals

03/08/22

In a relatively brief opinion, the Eleventh Circuit Court of Appeals ruled on the deadlines for appealing an order from the District Court (acting as an appellate court for a Bankruptcy Court Order) to the Court of Appeals.  Appellants appealed a Bankruptcy Court Order to the District Court for the Northern District of Georgia.  On July 15, 2021 the District Court dismissed the appeal after finding that Appellants lacked standing, and a Judgment was entered the same day.  Four days later, on July 19, 2021, an Amended Judgment was entered that only corrected the court division in the header.

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When Does a Judgment Lien and FiFa Attach to Real Property in Georgia?

02/17/22

In Georgia, does a judgment lien attach to real property as of the date the judgment was entered or as of the date and time the writ of fieri facias on that judgment is properly recorded in the county records, as required under Georgia law?  The Supreme Court of Georgia answered this question in Synovus Bank v. Kelley, No.

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