LLC Operating Agreements: Not Just a Form

By: Laura Day DelCotto In financial workout, litigation and bankruptcy settings, we often see problems and disputes which have arisen in limited liability company (LLC) settings. More often than not, financial issues among and between members bubble up to the surface. Being the most solvent of all the members is

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Employee Bonus Payments have “Value”

Chapter 11 Bankruptcies and discretionary bonuses By: Laura Day DelCotto A May 2019 Delaware Bankruptcy Court opinion provides a detailed analysis of why the Judge dismissed fraudulent conveyance claims. Claims were filed in numerous adversary proceedings by the post-confirmation liquidation trustee. They were filed against former employees who had received

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Small Business Reorganization Act of 2019

The new legislation could make filing Chapter 11 Bankruptcy appealing to small businesses By: Jamie L. Harris Filing for chapter 11 bankruptcy relief should be easier for small businesses by February 2020 when the Small Business Reorganization Act of 2019 becomes effective. The legislation which President Trump signed back in

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Bankruptcy and Single Member LLC’s

By: Dean A. Langdon Many small business owners form limited liability companies (LLC’s) for liability and tax reasons. And Kentucky courts have made it clear that an LLC with only one member is a separate legal entity. Therefore, debts of the LLC are not debts of the owner. Pannell v.

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Credit Matters After Bankruptcy

The Fair Credit Reporting Act: Damages for Inaccurate Reporting After Bankruptcy By: Michael J. Gartland Every person who has ever been extended credit should obtain a free, annual credit report. These could be obtained from the three consumer reporting agencies (TransUnion, Equifax and Experian). They should check to see if

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Forcing Someone into Bankruptcy: Who Wants to Go First?

By: Laura Day DelCotto The Bankruptcy Code clearly permits creditors to initiate an involuntary bankruptcy filing, and the Official Forms contain the simple paperwork to start the process.  11 U.S.C. §303.  However, the risks of being accused by the putative debtor of a “bad faith” filing are probably better than

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How to Get an Admin Claim

The Gold Standard for Chapter 11 Bankruptcy By: Laura Day DelCotto The Fifth Circuit recently issued an opinion that provides some guidance for seeking an allowed administrative claim (commonly called an “Admin Claim”) during a chapter 11 case.   It should be required reading:  while the facts arise from an oil

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Fred’s Closing its Stores in Chapter 11 Bankruptcy

By: Jamie L. Harris Being from a small town in Western Kentucky, Fred’s retail discount stores have been a staple in small town consumerism.  Fred’s was one of my parents’ favorite bargain shopping stores. I was really disheartened to hear that the company would be liquidating its remaining 300 stores

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Chapter 12: Now Open for Real Agricultural Business

Farmers Have More Freedom to File Bankruptcy Under New Chapter 12 Law By: Laura Day DelCotto Everyone is on the edge of their seats, waiting for President Trump to sign several pending bills impacting bankruptcies in the United States. One of them is the Family Farmer Relief Act of 2019,

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