What’s New in the Law?
Digressing to the 1st Amendment to honor Justice Ginsberg
Taking a break from bankruptcy and business, I thought I would share this piece about the importance of donor anonymity supported by the late Justice Ginsberg. There are so many fascinating facets to the law and its essence to the fabric of our society and economic ecosystem. Wishing everyone a great weekend!
Read MoreCOVID-19 spurs patent litigation among telehealth providers
Alert! All entrepreneurs and intrapraneurs in the healthcare space! COVID-19 has accelerated the advent of telehealth, and providers are vying for the #1 spot. A recent lawsuit filed by Teladoc highlights the importance of promptly securing patents and other forms of digital IP as barriers to entry from day 1.
Read MoreA defaulted chapter 13 plan can be extended under the CARES Act
Good news! A New Orleans judge has found the CARES Act to permit a 7 year extension of a chapter 13 plan whose payments were in default prior to enactment of the Act, holding that the currency of payments is irrelevant. In fact, most chapter 13 plans are in a state of default and ultimately…
Read MoreStakeholders anxiously await clarification of PPP loan forgiveness process
Borrowers and lenders are being advised to sit tight, while Congress reworks the kinks toward debt forgiveness for PPP loans. As outlined by the NYT, progress is being made toward overcoming the various hurdles so that all stakeholders will be able to achieve the initiative’s well-intended respite and fresh start.
Read MoreIs a PA Gaming License property that can be clawed back in bankruptcy?
The Commonwealth of PA was recently permitted to sustain revocation of a debtor’s gaming license and keep the $50M paid per state forfeiture laws, as a license is considered a privilege versus reclaimable property. This is yet another example of the intricacies of pre-bankruptcy planning, as lawyers and debtors collaborate to re-tool with minimal friction.
Read MoreAverting Bankruptcy: PPP loan forgiveness to be launched
The SBA is thankfully beginning to forgive PPP loans, staving off the backlog blocking new loans, as well as averting bankruptcy filings in the face of mounting debt. Legislation is also being drafted to streamline the paperwork for forgiving small loans, by permitting borrowers to self-verify to the proper use of funds.
Read MoreStudent Loans are inching toward normalization with other dischargeable debt in Bankruptcy
The Student Borrower Bankruptcy Relief Act has been initiated by the House to eliminate the Bankruptcy Code’s ambiguous barrier to student loan discharge, which has been read to require a showing of severe financial hardship if the debtor is forced to re-pay. This complements the judicial trend to discharge private student debt to effect the policy of…
Read MoreDemystifying Bankruptcy: Avoid “fraudulent transfers”
A salary raise by a distressed business entity for no services, or transfer of funds to a new entity for no value are prime examples of fraudulent transfers, as reasonably equivalent value has not been exchanged. These deals are vulnerable to unwinding, but with advance planning, the outcome can be a win-win for all.
Read MoreDemystifying bankruptcy: Start your prep 3+ months ahead
Planning is key. Payment by an insolvent entity for old debt is known as a “preference,” and the creditor may have to disgorge in bankruptcy if it received a greater payout than it would in Chapter 7. As the key to bankruptcy is equitable distribution, the creditor will be paid only its pro rata share. To…
Read MoreWill consumers recoup gift card claims in retail bankruptcies?
Gift card claims in bankruptcy are spotlighted in this article which highlights efforts by consumer advocates to put these claims at the head of the pay-out line, as well as provide support through an official court committee of consumer creditors. Note that retailers may shorten the deadline for collecting on the card.
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