Administrative Expense Claims, bankruptcy, sixth circuit, court

Sixth Circuit: Administrative Expense Claims Standard

By requesting payment of an administrative expense claim, the movant has the burden of proof and must demonstrate that the expenses were “reasonable, necessary and benefited the estate.” In re Cook & Sons Mining, Inc., 2005 U.S. Dist. LEXIS 21615 (E.D. Ky. Sept. 28, 2005). The Sixth Circuit normally utilizes

Read More
automatic stay, exceptions, police power, government

Automatic Stay: Police Power Exception

Police or Regulatory Power Exception to Automatic Stay The automatic stay is one of the fundamental debtor protections provided by the bankruptcy laws.   It permits the debtor to attempt a repayment or reorganization plan, or simply to be relieved of the financial pressures that drove it into bankruptcy. When

Read More
Automatic stay, extend, non-debtor, non-bankrupt parties

Extending Automatic Stay to Non-Debtors

A bankruptcy lawyer’s overview for automatic stay for non-bankrupt parties   Bankruptcy courts have the authority to extend the automatic stay to non-bankrupt parties, under limited circumstances. Bankr.Code, 11 U.S.C.A. §§ 105(a), 362(a).  Section 105 (a) of the Bankruptcy Code states as follows:  “The court may issue any order, process,

Read More

Social Security Income in Bankruptcy

Bankruptcy courts are an arena where you can see the intersection of the aging of our population and a failure to save sufficiently for retirement.  Even if retirement-age individuals want to continue working to supplement their income, jobs can be hard to come by.  We see an increase in older

Read More
student loan lawsuit

Robo-signing 2.0: Student Loan Collection

Once again, lenders are suing consumers without verification and knowledge of the fundamentals, like who owes how much and to whom.  Residential mortgage market crisis, round 2. Since 2007, the federal student loan balance has more than doubled, to almost $1.2 trillion from $516 billion.  That figure doesn’t include the

Read More
Counsel, Chapter 11, Bankruptcy Code, Disinterested

Counsel in Chapter 11 Proceedings

Retention of Counsel in Chapter 11 Proceedings By: Jamie L. Harris, Esq. 11 U.S.C. § 327(a) permits a debtor to employ an attorney that (1) does not “hold or represent and interest adverse to the estate”; and (2) is disinterested. 11 U.S.C. § 327(a). The Bankruptcy Code defines “disinterested person”

Read More
Taxes, Tax Increase, Kentucky, Frankfort, General Electric

Death Spiral: The Taxes Conundrum

Death Spiral: The Taxes Conundrum By: Laura Day DelCotto, Esq. Connecticut just raised taxes…. Again.  The state’s two- year $40.3 billion budget includes a projected $1.5 billion increase in tax revenues. The top individual tax rate increased from 6.7% to 6.99%.  A “temporary” 20% surtax on corporate taxes became permanent,

Read More
Chapter 9, municipality bankruptcy, pension

Part 2: Chicago Pension Crisis

Chicago: My kind of town By: Laura Day DelCotto, Esq. Last month I blogged about Moody’s downgrade of Chicago’s debt to “junk status,” and the city’s drama with the Chicago Teacher’s Union. UPDATE: Mayor Rahm Emanuel has found a way to “fix” Chicago’s $30 billion unfunded pension for public workers and

Read More
Social Security Disability Program, Insolvent, Kentucky

Social Security: Watch Congress and Act Now

A Call to Private Sector Future Retirees on Social Security By: Laura Day DelCotto, Esq. The Social Security Disability Program is kept separate from the Social Security Retirement Program. The Social Security Disability Program is “on the brink of insolvency” according to the Social Security Office of Inspector General. Without

Read More
hospital bankruptcy, rural hospitals, chapter 11

Rural KY Hospital, New Horizons, files bankruptcy

New Horizons (Owen County Hospital): Another Rural Kentucky Hospital in Trouble By Laura Day DelCotto Another of Kentucky’s rural hospitals just filed bankruptcy, stating that it has been exploring sale options for a year, and that it has recently decided that a sale through the bankruptcy court process is its

Read More