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.
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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.
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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…
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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.
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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…
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A recent analysis from Bloomberg (see below) identifies what counsel to small businesses already knows regarding MCAs; the funding concept can be a trap for the unwary and put a company in a death spiral. Often the only option is a Subchapter V case:…
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Published on October 31, 2022 – USCOURTS.GOV Personal and business bankruptcy filings fell 11.7 percent for the 12-month period ending Sept. 30, 2022. Filings continued a fall that coincided with the start of the coronavirus (COVID-19) pandemic. Ac…
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Under the heading of “one hand giveth and one hand taketh away”, attorneys have mused about the possibility that creditors could garnish payments to individuals and corporations that receive benefits under the CARES Act. This concern is p…
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Total U.S. commercial bankruptcy filings increased 10 percent in July 2016 over July of last year, according to data provided by Epiq Systems, Inc. Commercial filings totaled 2,922 in July 2016, up from the July 2015 total of 2,661. July is the ninth…
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