The massive economic stimulus plan circulating in Congress right now will permit more businesses or individuals to take advantage of Subchapter 5 of the Bankruptcy Code (which FactorLaw has analyzed in prior posts) by increasing the debt cap from $2,…
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We have been alerted by an email from the Kreshmore Group, an advisory firm in Illinois, about a new programs called the “COVID-19 Federal Disaster Loans for Small Businesses and Nonprofits According to the email from Kreshmore: On 3/19/2020, t…
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The following procedures have been adopted by the District Court for the Northern District of Illinois, effective March 17, 2020: In all civil cases, all deadlines, whether set by the court or by the Rules of Civil Procedure or Local Rules, are hereb…
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The Office of the United States Trustee in Chicago recently announted that: Effective immediately, all in-person chapter 7, 12, and 13 section 341 meetings scheduled through April 10, 2020, are hereby continued until a later date to be determined. Ab…
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The following is Elizabeth Warren’s description of her bankruptcy reform plan: I spent most of my career studying one simple question: why do American families go broke? When I started my career as a young law professor, I thought — like…
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We just posted the agenda for the upcoming omnibus hearing on March 18, 2020, for the Mack Industries case. Visit our Mack Industries page to get the agenda.
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In In re Orlandi, 19-8001 (6th Cir. BAP Feb. 28, 2020), the Sixth Circuit BAP held that a chapter 7 debtor’s liability on a lease guaranty had been discharged when the guarantor/debtor filed for bankruptcy relief years earlier. Thus, the landlo…
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In Moore Properties of Person County, LLC, (No. 20-80081; February 28, 2020), Judge Kahn, of the Bankruptcy Court for the Middle District of North Carolina, held that under the specific facts before the Court the SBRA could be applied retroactively s…
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In what appears to be the first case applying the Small Business Reorganization Act (SBRA), on February 21, 2020, a Central District of California bankruptcy court (In re Progressive Solutions, Inc., Case No. 8:18-bk-14277-SC) held that an existing c…
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1. THE SUBCHAPTER 5 ELECTION. Chapter 11 now contains a “Subchapter 5” which applies only to “small business debtors” that make a so-called “Subchapter 5” election. See 11 U.S.C. §§ 1181-1195. Absent such an election, the small business…
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