The new legislation could make filing Chapter 11 Bankruptcy appealing to small businesses Filing for chapter 11 bankruptcy relief should be easier for small businesses by February 2020 when the Small Business Reorganization Act of 2019 becomes effective. The...
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My Business is in Financial Trouble: Now What?
By: Laura Day DelCotto I recently attended a national panel presentation involving a workout consultant, a banker and an attorney. Yes, it sounds like the start of a joke, but this group discussion was spot-on as to what “restructuring professionals” see on a day to...
Bankruptcy and Single Member LLC’s
By: Dean A. Langdon Many small business owners form limited liability companies (LLC’s) for liability and tax reasons. And Kentucky courts have made it clear that an LLC with only one member is a separate legal entity. Therefore, debts of the LLC are not debts of the...
Forever 21: Only the Strong Survive in Today’s Retail Environment
Forever 21 Files for Chapter 11 Bankruptcy Protection By: Laura Day DelCotto With the amount of money I have personally spent over the years at Forever 21, shopping with a teenage daughter, I find it somewhat hard to believe that Forever 21 has now filed for Chapter...
How to Get an Admin Claim
The Gold Standard for Chapter 11 Bankruptcy By: Laura Day DelCotto The Fifth Circuit recently issued an opinion that provides some guidance for seeking an allowed administrative claim (commonly called an “Admin Claim”) during a chapter 11 case. It should be required...
Fred’s Closing its Stores in Chapter 11 Bankruptcy
Being from a small town in Western Kentucky, Fred’s retail discount stores have been a staple in small town consumerism. Fred’s was one of my parents’ favorite bargain shopping stores. I was really disheartened to hear that the company would be liquidating its...
Chapter 12: Now Open for Real Agricultural Business
Farmers Have More Freedom to File Bankruptcy Under New Chapter 12 Law By: Laura Day DelCotto Everyone is on the edge of their seats, waiting for President Trump to sign several pending bills impacting bankruptcies in the United States. One of them is the Family Farmer...
“Ad Hoc Committee Of Non-Consenting Creditors” … Next time, pick another name….
By: Laura Day DelCotto The Eighth Circuit recently affirmed the appeal by the “Ad Hoc Committee of Non-Consenting Creditors” of the 2017 confirmation of the Chapter 11 Plan of Peabody Energy, In re Peabody Energy Corp., No. 18-1302 (August 9, 2019 ). I would say that...
Marriage and Small Business Debt
By: Dean A. Langdon Marriage involves sharing risks and rewards with a spouse. Entrepreneurial couples may establish a business together, or one spouse may establish a business and exclude their spouse due to the risk of economic loss. After all, between 20-50% of...
Recent Sixth Circuit BAP Case Explains What “Court of Equity” Really Means
By: Laura Day DelCotto There are many cases that stand for the proposition that bankruptcy courts are “courts of equity,” but what does that really mean? To the lay person, this sounds like it means that bankruptcy courts have wide discretion to be fair and avoid...