In The (Red)®

In The (Red)®

The Business Bankruptcy Blog

Tag Archives: BAPCPA

No Fooling: Bankruptcy Code Dollar Amounts Will Increase On April 1st

Posted in Business Bankruptcy Issues, Recent Developments
Although it hasn’t gotten much publicity, certain dollar amounts in the Bankruptcy Code will be increased for cases filed on or after April 1, 2007. You can find a chart listing all of the changes on this Federal Register page, which printed last month’s official notice from the Judicial Conference of the United States.  Among the most meaningful for business… Continue Reading

Retail Bankruptcies: New Article Examines How The 2005 Bankruptcy Code Amendments Have Impacted Retailers

Posted in Business Bankruptcy Issues, Recent Developments
I wanted to let you know about a new article recently published in the New York Law Journal by my colleagues Lawrence Gottlieb, the Chair of the Cooley Godward Kronish Bankruptcy & Restructuring Group, and Seth Van Aalten. Entitled "Is The Death Knell Sounding For Retail Reorganizations?," it examines how the changes made by the… Continue Reading

The Supreme Court’s Recent Decision In Marrama: Any Insight Into Business Bankruptcy Issues?

Posted in Business Bankruptcy Issues, Recent Developments
On Wednesday the U.S. Supreme Court issued its decision in Marrama v. Citizens Bank of Massachusetts. The Supreme Court answered the question of whether an individual has an absolute right to convert a Chapter 7 bankruptcy case to a Chapter 13 "wage earner" bankruptcy case or whether that right can be conditioned on the absence of bad faith. This… Continue Reading

The New Section 503(b)(9) Administrative Claim: The Latest On What Courts And Debtors Have Been Doing

Posted in Business Bankruptcy Issues, Recent Developments, The Financially Troubled Company
A couple of months ago I posted on the new "20 day goods" administrative claim enacted as part of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA"). BAPCPA, which took effect in October 2005, added Section 503(b)(9) to the Bankruptcy Code giving vendors an administrative priority claim for "the value of any goods received by… Continue Reading

Chapter 15: The Bankruptcy Code’s New Cross-Border Insolvency Rules

Posted in Business Bankruptcy Issues, Recent Developments
Chris Laughton, a UK insolvency practitioner and publisher of InsolvencyBlog.com, has a number of recent posts on the adoption in the UK of the Model Law on Cross-Border Insolvency (“Model Law”), a 1997 effort by the United Nations Commission on International Trade Law (“UNCITRAL”). That got me thinking that I should post something on the recent changes… Continue Reading

Delaware Bankruptcy Court Denies Reclamation Claimant’s TRO Request To Stop Sale Of Goods

Posted in Business Bankruptcy Issues, Recent Developments
In a recent post, I discussed how Section 546(c) of the Bankruptcy Code, as revised by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA"), gives vendors the ability to assert a reclamation claim for goods received by a debtor in the 45 days prior to the bankruptcy filing. In addition to extending… Continue Reading

20 Day Goods: New Administrative Claim For Goods Sold Just Before Bankruptcy

Posted in Business Bankruptcy Issues, The Financially Troubled Company
In a recent post about a vendor’s reclamation rights, I discussed how the 2005 amendments to the bankruptcy laws, known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (called "BAPCPA"), extended a vendor’s right to reclaim goods once a bankruptcy petition has been filed. This post focuses on another of BAPCPA’s important changes affecting vendors, specifically, the new… Continue Reading

Reclamation: Can A Vendor “Get The Goods” From An Insolvent Customer?

Posted in Business Bankruptcy Issues, The Financially Troubled Company
Although vendors sell goods to get paid, it doesn’t always work out that way. If the customer is insolvent or files bankruptcy, the vendor may be stuck with an unpaid account. To make matters worse, some customers (especially those with limited prospects for financing) may even "load up" on inventory and then file bankruptcy without paying. Regardless… Continue Reading

Commercial Real Estate Leases: How Are They Treated In Bankruptcy?

Posted in Business Bankruptcy Issues
Much like executory contracts, commercial real estate leases are governed by special rules in bankruptcy. If a lease’s term has not yet expired, it is known as an “unexpired lease” (yet more clever bankruptcy terminology). This post explores how landlords and tenants are treated in bankruptcy, first in the more common situation of a tenant’s bankruptcy and then… Continue Reading