Bankruptcy

The Fair Debt Collection Practices Act And Convenience Fees

AUTHORS  Matthew Luzadder , Becca Wahlquist and Nathan Jamieson Kelley Drye & Warren LLP Many creditors and loan or mortgage servicers provide the option to use certain payment methods, such as online or over-the-phone payments, to which they may apply convenience or service fees. Recently, class action plaintiffs have used state laws with a broader definition of “debt collector” …

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Best Practices To Limit Preference Liability Exposure In Bankruptcy

AUTHORS  Joseph A. Foster and Sabrina C. Beavens McLane Middleton, Professional Association As the saying goes, what goes up, must come down. After years of robust growth, the U.S. economy appears to be hitting a rough patch. In the coming months, it is likely that some businesses will not survive the challenges that lie ahead, and will …

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Another bankruptcy meme, opioid and crypto cases in the news, interest in Celsius and aggressive action in 3M related bankruptcy

Below is our initial take on recent bankruptcy-related developments: Revlon Shareholders Seek Official Representation in Bankruptcy Case | Reuters A group of Revlon shareholders asked a bankruptcy judge to appoint an official committee to represent them, as the group feels that their interests are not being protected in bankruptcy proceedings. S&K Take: Shares of REV …

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The New Value Defense

In this episode of Lowenstein’s Bankruptcy Lowdown, Eric Chafetz and Phillip Khezri of the firm’s Bankruptcy & Restructuring Department discuss a recent Eleventh Circuit Court of Appeals decision that the post-petition reservation for, or payment of, a 503(b)(9) claim is not an unavoidable transfer that reduces a creditor’s new value defense. Speakers: Eric Chafetz, Partner, …

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Your Crypto Platform Filed for Bankruptcy. Now What?

The recent bankruptcy filings of Voyager Digital Holdings, Inc. (Voyager) and Celsius Network LLC (Celsius) have abruptly introduced many customers to the bankruptcy process for the first time.  Who Is Protecting Your Rights? At the outset of a Chapter 11 bankruptcy petition, the Office of the United States Trustee, the federal government’s bankruptcy watchdog, will …

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Creditors Beware: Bankruptcy Stay May Shield Property Possessed but Not Owned by Debtor

[co-author: Andrew Kragie, Law Clerk] The automatic stay triggered by a bankruptcy filing may protect the debtor’s residence even if the debtor does not own the property, according to a recent decision from a New York-based federal appeals court. In a case of first impression decided in July 2022, the Second Circuit set a bright-line …

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TPC Bankruptcy and District Court Opinions Uphold Uptiering Transaction and Teach an Important Lesson on the Need for Express Lender Protections in Debt Documents

SUMMARY A recent U.S. District Court for the District of Delaware opinion, In re TPC Grp. Inc., provided another instance of an uptiering transaction withstanding legal scrutiny and provides further support for the view that courts generally avoid “reading-in” language not expressly stated in debt documents, especially when such documents were negotiated at arms-length by sophisticated …

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How Chapter 13 Bankruptcy Works In Maryland

If a debtor fails to complete either bankruptcy course, the debtor cannot receive a bankruptcy discharge. You may be considering filing bankruptcy and wondering whether to pursue a Chapter 13 bankruptcy in Maryland.  Deciding between these two types of consumer bankruptcy can be confusing. For example, you may have received a Chapter 7 bankruptcy discharge in 8 years or …

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Second Circuit Finds Willful Stay Violation in Foreclosure Sale of Non-Debtor’s Real Property

On July 6, 2022, the Court of Appeals for the Second Circuit (the Circuit Court), in analyzing an issue of first impression, entered a decision clarifying the expansive applicability of the automatic stay provision of the Bankruptcy Code. In Bayview Loan Servicing LLC v. Fogarty (In re Fogarty), No. 20-2187, 2022 U.S. App. LEXIS 18515 (2d …

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Text Messages From Debt Collectors? Not in My Backyard!

AUTHOR  Abigail S. Pressler  Some people just don’t like change. New developments are often opposed by small groups prioritizing their own self-interest over the interests of the community at large. In real estate, these groups are sometimes known as “NIMBYs,” short for their rallying cry: “Not in My Backyard!” Well, it looks like debt collectors …

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