Discharge of Student Loan Debt OK'd Under Brunner Standard
March 01, 2020
In January, a Southern District of New York U.S. Bankruptcy Chief Judge entered a decision granting summary judgment to a pro se debtor, finding that he debtor had satisfied the "undue hardship" standard set forth in Section 523(a)(8) of the Bankruptcy Code, and ordering the discharge of the student loan debt of more than $220,000.
Lessor Repossession of Property on Eve of Lessee Bankruptcy
March 01, 2020
Voluntary Turnover or Face Contempt
Lessors who repossess property immediately prior to a lessee bankruptcy filing may be required to return such property or face sanctions by the bankruptcy court. Federal courts are currently split on the issue of whether the lessor must voluntary surrender property seized petition or may hold such property until such time as the debtor seeks, and obtains, an order of turnover.
Tips to Minimize Landlord's Exposure When a Commercial Tenant Files Bankruptcy
March 01, 2020
Landlords often have clues that a tenant is going to be filing for bankruptcy, rental payments are consistently late several months in a row and the tenant falls more than a month behind on the rent. But, it can still be shocking when a landlord receives a legal notice in the mail, instead of a rent check.
Recent Developments in Third Circuit Bankruptcy Law
March 01, 2020
Bankruptcy and corporate restructurings continue to be active despite generally strong U.S. financial markets and broader macroeconomic conditions. Here is a brief overview of three recent and noteworthy bankruptcy decisions within the Third Circuit.
Examining the Interplay Between Exculpation Clause and Fiduciary Duty
February 01, 2020
In the case of In re Solutions Liquidation, the U.S. Bankruptcy Court for the District of Delaware adjudicated a motion to dismiss filed by the debtors' former managers and officers in connection with the breach of fiduciary duty complaint filed against them by the trustee of the debtors' liquidating trust.
Sixth Circuit Considers Rejection of a Filed Power Purchase Agreement
February 01, 2020
The provisions of the Bankruptcy Code sometimes conflict with other federal laws and regulations. The Sixth Circuit Court recently considered whether an energy company debtor could reject a power purchase agreement as an executory contract that had been filed with the Federal Energy Regulatory Commission (FERC)
Chapter 11 Plan Support Agreements: Greasing the Wheels for Confirmation Success
January 01, 2020
Plan support agreements are often an essential component of a successful complex Chapter 11 reorganization and provide a framework for a debtor's financial restructuring. These agreements have increasingly been used to induce core groups of major lenders and bondholders to support a debtor's restructuring in return for enhanced recoveries.
