In The (Red)®

In The (Red)®

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Tag Archives: preference

Official Bankruptcy Forms Revised To Reflect April 1, 2016 Dollar Amount Adjustments Now In Effect

Posted in Business Bankruptcy Issues, Recent Developments
As discussed in an earlier post called “Going Up: Bankruptcy Code Dollar Amounts Will Increase On April 1, 2016,” various dollar amounts in the Bankruptcy Code and related statutory provisions were increased for cases filed on or after today, April 1, 2016. This information sheet has a list of all the dollar amount changes now in… Continue Reading

Going Up: Bankruptcy Code Dollar Amounts Will Increase On April 1, 2016

Posted in Business Bankruptcy Issues, Recent Developments
An official notice from the Judicial Conference of the United States was just published announcing that certain dollar amounts in the Bankruptcy Code will be increased ever so slightly — only about 3% this time — for new cases filed on or after April 1, 2016. Follow this link for the Federal Register page with a chart… Continue Reading

Spring 2013 Edition Of Bankruptcy Resource Now Available

Posted in Business Bankruptcy Issues, Recent Developments
The Spring 2013 edition of the Absolute Priority newsletter, published by the Bankruptcy & Restructuring group at Cooley LLP, of which I am a member, has now been released. The newsletter gives updates on current developments and trends in the bankruptcy and workout area. Follow the links in this sentence to access a copy of the newsletter. You can… Continue Reading

Going Up: Bankruptcy Dollar Amounts Will Increase On April 1, 2013

Posted in Business Bankruptcy Issues, Recent Developments
It hasn’t gotten much publicity yet, but certain dollar amounts in the Bankruptcy Code will be increased for new cases filed on or after April 1, 2013. Follow this link for a chart listing all of the changes on this Federal Register page, which printed this month’s official notice from the Judicial Conference of the United… Continue Reading

Spring 2011 Edition Of Bankruptcy Resource Now Available

Posted in Business Bankruptcy Issues, Recent Developments, The Financially Troubled Company
The Spring 2011 edition of the Absolute Priority newsletter, published by the Cooley LLP Bankruptcy & Restructuring group, of which I am a member, has just been released. The newsletter gives updates on current developments and trends in the bankruptcy and workout area. Follow the links in this sentence to access a copy of the newsletter. You can also… Continue Reading

Recent Decision Holds That Section 503(b)(9) “20 Day” Claims Can Be Used As Part Of New Value Preference Defense

Posted in Business Bankruptcy Issues, Recent Developments
Earlier this year, the U.S. Bankruptcy Court for the Middle District of Tennessee issued a decision holding that creditors sued for preferences can assert a new value defense based on the goods provided to a debtor in the 20 days before the bankruptcy case was filed. The debtor had challenged the effort to use those 20 day goods… Continue Reading

Spring 2009 Edition Of Bankruptcy Resource Is Now Available

Posted in Business Bankruptcy Issues, Recent Developments
The Spring 2009 edition of the Absolute Priority newsletter, published by the Cooley Godward Kronish LLP Bankruptcy & Restructuring group, of which I am a member, has just been released. The newsletter gives updates on current developments and trends in the bankruptcy and workout area. Follow the links in this sentence to access a copy of… Continue Reading

Assignments For The Benefit Of Creditors: Simple As ABC?

Posted in Business Bankruptcy Issues, The Financially Troubled Company
Companies in financial trouble are often forced to liquidate their assets to pay creditors. While a Chapter 11 bankruptcy sometimes makes the most sense, other times a Chapter 7 bankruptcy is required, and in still other situations a corporate dissolution may be best. This post examines another of the options, the assignment for the benefit of creditors,… Continue Reading

The Terrible Twos? A Look At BAPCPA’s Impact On Business Bankruptcy Cases At Its Second Anniversary

Posted in Business Bankruptcy Issues
Tomorrow, October 17, 2007, marks the second anniversary of the effective date of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, known as BAPCPA.  BAPCPA was enacted primarily to make sweeping changes to the consumer provisions of the Bankruptcy Code. However, BAPCPA also made significant revisions in the business bankruptcy arena.  When it was… Continue Reading

Ordinary Course Preference Case Takes Extraordinary Turn: Ninth Circuit Strikes Down Local Bankruptcy Rule On Jury Trials

Posted in Business Bankruptcy Issues, Recent Developments, The Financially Troubled Company
Preference lawsuits are filed all the time in bankruptcy cases and the ordinary course of business defense is frequently asserted. Still, it’s the rare case that ends up with a federal court of appeals decision addressing jury trial rights and invalidating a bankruptcy court’s local rule. This post is about just such a case. The Bankruptcy Preference. As a… Continue Reading

Third Circuit Holds Contemporaneous Exchange Defense To Preference Claim Is Available Even For Credit Transactions

Posted in Business Bankruptcy Issues, Recent Developments, The Financially Troubled Company
On June 7, 2007, the U.S. Court of Appeals for the Third Circuit issued a decision in the In re Hechinger Investment Company case holding that the "contemporaneous exchange for new value" defense to preference claims can apply even if the payments were made in the context of a credit arrangement. The key is whether the parties… Continue Reading

Ninth Circuit Clarifies Earmarking Defense To Preference Claims

Posted in Business Bankruptcy Issues, Recent Developments, The Financially Troubled Company
On June 4, 2007, the U.S. Court of Appeals for the Ninth Circuit brought some additional clarity to the earmarking defense to preference claims in its decision in Metcalf v. Golden, an adversary proceeding within the In re Adbox, Inc. Chapter 7 case. In this post, I’ll give a little background on preferences and the earmarking defense and then discuss… Continue Reading

Defending A Preference: Ninth Circuit Holds That Even First Time Transactions Can Be In The “Ordinary Course”

Posted in Business Bankruptcy Issues, Recent Developments, The Financially Troubled Company
In a decision issued on April 3, 2007 in the In re: Ahaza Systems, Inc. case, the Ninth Circuit held that even first time transactions can qualify for the "ordinary course of business" defense to preferences. A copy of the Court of Appeal’s decision is available here. The Bankruptcy Preference. As a quick refresher, preferences… Continue Reading

Appointment Of Interim Trustee Before Section 546’s Two-Year Statute Of Limitations Expires Insufficient To Extend Period For Bringing Preference Actions

Posted in Business Bankruptcy Issues, Recent Developments
Scott Riddle over at the Georgia Bankruptcy Law Blog has an informative post on the decision by the U.S. Court of Appeals for the Third Circuit last week in the American Pad & Paper Company case. The case involved Section 546(a) of the Bankruptcy Code, which extends the standard two-year statute of limitations for bringing preference and… Continue Reading

Preferences — How To Protect Yourself When Doing Business With A Financially Troubled Customer

Posted in Business Bankruptcy Issues, The Financially Troubled Company
It’s bad enough when you can’t collect everything you are owed because of a customer’s financial problems.  We’ve all faced that situation at one time or another.  Unfortunately, the U.S. Bankruptcy Code can add an entirely different wrinkle to the problem called a "preference."  (The word comes from the idea that your successful collection efforts enabled you to get preferred… Continue Reading