GCK On Law
Courts Divided as to Whether a Debtor May Convert a Case After Discharge
Section 706(a) of the Bankruptcy Code (“Code”) provides “[t]he debtor may convert a case under this chapter to a case under chapter 11, 12 or 13 of this title at any time, if the case has not been converted under section 1112, 1208 or 1307 of this title.” While the...
Bankruptcy Court Rules Horse Boarding and Training Facility Not an Eligible Chapter 12 Debtor
Under Section 109(f) of the Bankruptcy Code, “[o]nly a family farmer * * * with regular annual income may be a debtor under chapter 12 of this title.” Chapter 12 of the Bankruptcy Code provides for the adjustment of debts of a “family farmer” as the term is defined...
Courts Conflicted Whether Bankruptcy Courts May Enter Final Judgments to Avoid Fraudulent Conveyances
Congress explicitly authorized bankruptcy courts to enter final judgments resolving disputes over fraudulent conveyances in 28 U.S.C. §157(b)(2)(H) which provides that “[b]ankruptcy judges may hear and determine all * * * core proceedings arising under title 11 * * *...
Are Option Agreements Executory Contracts under Section 365?
The Bankruptcy Code does not provide a definition of the term “executory contract.” The majority of courts apply the “Countryman test” to determine if a contract is executory, which provides that a contract is executory if the obligations of both the debtor and the...
Conflict in Application of Sections 506(1) and 1129(b)(2)(A)(iii) in Dirt for Debt Valuation
Section 1129 of the Bankruptcy Code governs confirmation of a Chapter 11 plan. Section 1129(b) of the Bankruptcy Code allows for confirmation of a plan over a creditor’s objection as long as certain requirements are met. One such requirement for cramdown is that the...