» Bankruptcy Litigation

Rejection of a lease by a debtor-landlord is a breach, not a termination. Section 365(h) lets tenants stay in possession and offset rent, but requires a prompt election—and in some circuits a free-and-clear sale can still cut off those rights. Read More

A transfer from an LLC account—even a single-member LLC—is not an interest of the debtor in property under section 544(b). Key takeaways from In re Samy for trustees and LLC members. Read More

Pre-petition payments under a later-assumed contract cannot be avoided as preferences. A new Iowa decision shows how this defense can defeat a trustee’s claim on a motion to dismiss. Read More

When a general partner files bankruptcy, its non-debtor partners often assume that state law or the partnership agreement removes the general partner automatically and immediately. Partnership statutes call this removal event “dissociation,R… Read More

When a debtor’s business is sold or refinanced one of the first questions is “who is on the other side of the deal”? The answer is frequently associated with the Debtor, with significant consequences for the scrutiny applied to the deal. Read More

Small businesses often turn to merchant cash advance (MCA) funding because of the ease with which such transactions can close. Oftentimes, the MCA funder does not engage in traditional due diligence typically undertaken by banks, allowing financing t… Read More

A new ruling from the U.S. Bankruptcy Court for the Northern District of Illinois is a wake-up call for consumer debtors who thought “surrender” in a Chapter 13 plan meant they were done with the property. See In re Jones, Case No. 25bk10807, Dkt… Read More

In People of the State of Illinois ex rel. Illinois Department of Labor v. Quality Therapy & Consultation, Inc., 2026 IL App (1st) 241953-U (March 17, 2026), the Illinois Appellate Court, First District, affirmed a circuit court ruling that the i… Read More