Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
We continue to be impressed how recurring issues confront the courts to interpret the Bankruptcy Code — conflicts between bankruptcy and other federal policies, addressing the plain meaning of statutory provisions, and determining when a claim arises under the bankruptcy code. Where tax liabilities are involved, one can anticipate tension between bankruptcy policy objectives and federal tax policy. So when does a tax liability claim arise in a bankruptcy case? If a tax claim accrues prior to the petition date, it may be a prepetition unsecured claim. If it arises after the bankruptcy filing, it may qualify for priority treatment as an administrative expense of the bankruptcy estate, and must be paid in full before distribution to holders of unsecured claims. This is not a trivial matter. The issue was recently addressed by the U.S. District Court for the District of Delaware in In re Affirmative Insurance Holdings, Civ. Case No. 19-2034-RGA (July 27, 2020). Judge Richard Andrews, sitting as an appellate court reviewing a decision of the bankruptcy court, ruled that federal income taxes for the year in which a debtor files for bankruptcy are entitled to priority treatment as administrative expenses when the end of the taxable year occurred after the bankruptcy petition date. The court noted that the issue of how to treat a “straddle year” for federal income tax under the Bankruptcy Code has not been decided by any appellate court.
*May exclude premium content
By Jonathan Friedland and Hajar Jouglaf
Using Subchapter V’s Unlimited Debt Limit & Confirmation Requirements to Eradicate Personal Guarantees
Limitations to Subchapter V suggest that it will be of no use to all but very small companies, but before turning completely away from the topic, there are other considerations in play.
By Francis J. Lawall and Patrick M. Ryan
In 2020, we’ve become all too familiar with the struggles of the gas and oil producers upon which many of our most popular industries rely. The resultant surge in restructuring activities, including Chapter 11 proceedings, among gas and oil producers is the highest in years.
By Charles M. Tatelbaum, Christina V. Paradowski and Brittany L. Hynes
A recent ruling in the U. S. Court of Appeals for the Tenth Circuit represents a significant departure from the generalized belief that student loan debts cannot be discharged in bankruptcy, and which, if followed by other circuit courts, could have a dramatic impact on bankruptcy law.
By Jeffrey T. Zaino
Bankruptcy courts are embracing virtual alternative dispute resolution (ADR) processes to handle cases during this extraordinary period. Engaging in online mediation, and arbitration, can expedite Chapter 11 cases toward an equitable conclusion for the parties involved, while ensuring everyone can practice safe social-distancing.