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.
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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 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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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…
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Like other national retailers, Pier 1 Imports filed for bankruptcy in March, hoping to sell its assets and to liquidate under-performing locations. Then the Covid19 Pandemic hit the U.S. with its full force, causing mandatory stay at home orders in a…
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Today the Bankruptcy Court in New Mexico (In re Roman Catholic Church of the Archdiocese of Santa Fe, 18-13027 (Bankr. D. N.M.) ordered the SBA to make PPP funds available to a chapter 11 debtor and stated that if the debtor does not get the funds, t…
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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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