GCK On Law
Courts differ on application of post-petition interest per Section 502(b)(2)
It has been stated that under general equitable principles of insolvency law, interest ceases to accrue at the beginning of a bankruptcy case. Three reasons have been given for this rule: (1) postpetition interest is a penalty imposed for a delay of payment required...
2020 IRS and Illinois Income Tax Filing Season Extended to May 17, 2021
2020 Federal Income Tax Extension On March 17, 2021, the IRS announced that the due date for individuals to file their 2020 federal income tax returns (e.g., Form 1040, 1040-EZ) will be automatically extended from April 15, 2021 to May 17, 2021. Individual taxpayers...
Courts Divided as to Amount of Time in Which Interim Trustee May Bring Avoidance Actions
Section 546(a) of the Bankruptcy Code sets a two-year time limit for the commencement of avoidance actions on behalf of the bankruptcy estate. This provision was amended in 1994 to provide an additional year for such actions running from the date of the...
Courts Divided Whether Individual Debtor may Retain Exempt Property in §1129(b) Cramdown
In order to confirm a Chapter 11 plan, the debtor must meet the requirements of 11 U.S.C. §1129(a). In connection therewith, subject to the exception contained in Section 1129(a)(8), all impaired classes under the plan must vote in favor of acceptance of the plan. ...
Courts Divided on Abandonment of Assets not Disclosed on Schedule A/B
Section 554(c) of the Bankruptcy Code provides that, unless the court orders otherwise, “any property scheduled under section 521(a)(1) of this title not otherwise administered at the time of the closing of a case is abandoned to the debtor.” Surprisingly, courts...