GCK On Law
Restrictions on Amending Schedules Upon Reopening Case
Rule 1009(a) of the Federal Rules of Bankruptcy Procedure provides that schedules “may be amended by the debtor as a matter of course at any time before the case is closed.” This facially simple provision, however, has led to a, a split among the courts as to whether...
Courts Divided on Abandonment of Assets not Disclosed on Schedule A/B
Section 554(a) of the Bankruptcy Code permits the trustee to abandon estate property upon a showing that it is either burdensome or of inconsequential value and benefit to the bankruptcy estate. Abandonment can also occur under Section 554(c) if property of the...
Courts Divided as to Interest Rates in Solvent Estates under Sections 726(a)(5) and 1129(a)(7)
The general rule in bankruptcy is that unsecured creditors are not entitled to post-petition interest on their allowed claims.[1] An exception to this rule is found in Section 726(a)(5) of the Bankruptcy Code which provides for the payment of “interest at the legal...
Courts divided whether Section 362 stays statutory redemption periods beyond that provided in Section 108(b), 362(a) & 1322(b)(2)
Courts are divided as to whether statutory redemption periods are stayed by Section 362(a) of the Bankruptcy Code. There are also competing views as to impact of the post-petition expiration of a redemption period on property of the estate, including, for example,...
Enforcement of Arbitration Clauses in Bankruptcy Proceedings
The Federal Arbitration Act (“FAA”) provides that arbitration agreements “shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.” 9 U.S.C. §2. The FAA further provides that the court,...