Tabla de contenidos para November 2022 en ABI Journal

“Consumer Bankruptcy Reform Act” and “Student Borrower Bankruptcy Relief Act” Reintroduced in Congress Two pieces of legislation proposing sweeping changes to the consumer bankruptcy system were reintroduced in the House and Senate at the end of September. Sen. Elizabeth Warren (D-Mass.) and House Judiciary Committee Chairman Jerrold Nadler (D-N.Y.) on Sept. 28 reintroduced the “Consumer Bankruptcy Reform Act” (CBRA), which proposes to “simplify and modernize the consumer bankruptcy system and make it easier for consumer debtors.”1 The legislation would replace the two separate consumer bankruptcy chapters, 7 and 13, with a single system proposed as “chapter 10,” the goal being to streamline the filing process and reduce filing fees. The bill would also aim to “ensure that families can care for themselves, their children, and their elderly parents during the…

Ryan E. Davis Winderweedle, Haines, Ward and Woodman, PA Orlando, Fla. Lauren M. Reynolds Winderweedle, Haines, Ward and Woodman, PA Orlando, Fla. Ryan Davis is a shareholder with Winderweedle, Haines, Ward and Woodman, PA in Orlando, Fla., and chairs the firm’s Bankruptcy Department. Lauren Reynolds is a senior associate in the same office. Valuation of assets is rife with complexities and issues in nearly every context. For starters, should valuation be based on liquidation value or market value? What is the appropriate valuation methodology: the cost approach, market approach or discounted cash flow approach? Each of those approaches has its own subset of issues, such as the appropriate discount rate, proper trade multiple, and identification of suitable comparables. On top of those issues, in connection with the confirmation of a…

Amira L. Vicari Hills Westervelt, Johnson, Nicoll & Keller, LLC Peoria, Ill. Amira Vicari Hills is a member at Westervelt, Johnson, Nicoll & Keller, LLC in Peoria, Ill. Her practice is focused on credit union law, which includes representing a number of credit unions in all aspects of operations, including creditors’ rights. Section 1329‌(a) of the Bankruptcy Code allows a debtor to modify a confirmed chapter 13 plan, but only under certain circumstances. At the request of the debtor, trustee or an unsecured creditor, a confirmed chapter 13 plan may be modified to accomplish the following: (1) increase or reduce the amount of payments on claims of a particular class provided for by the plan; (2) extend or reduce the time for such payments; or (3) alter the amount of…

Gregory Burrell Chapter 13 Trustee Minneapolis Gregory Burrell has been a chapter 13 trustee for the District of Minnesota since Oct. 1, 2013, and had previously worked as counsel to a chapter 7 panel trustee, handling consumer chapter 7 and 13 cases. Over the years, there has been research conducted and countless articles written on how to eliminate implicit bias. Businesses recognize the value in pursuing efforts to create a more inclusive working environment through the elimination of implicit biases. The world is becoming more diverse every day, but the thinking that welcomes all individuals into the work environment is not changing at the same pace as the demographics. For this reason and others, it is important that we adapt and determine ways to change our thinking about people and…

Margaret A. Vesper Ballard Spahr LLP Wilmington, Del. Margaret Vesper is an associate in the Bankruptcy and Restructuring Group at Ballard Spahr LLP in Wilmington, Del. Involuntary bankruptcies filed pursuant to § 303 of the Bankruptcy Code are somewhat distinct from voluntary bankruptcies filed under § 301. The most dramatic differences between the two types of bankruptcies are revealed during the “time period between the filing of the involuntary petition and the entry of the order for relief,” commonly referred to as the “gap period.”2 Specifically, the differences between involuntary and voluntary bankruptcy filings can affect the priority of claims against the debtor. Thus, the differences are of particular importance to creditors doing business with debtors during the gap period. Involuntary Bankruptcies As its name suggests, the debtor does not…

Stephen W. Sather Barron & Newburger, PC; Austin, Texas Stephen Sather is a shareholder with Barron & Newburger, PC in Austin, Texas, and a subchapter V trustee in the Western District of Texas. He is board certified in business bankruptcy law by the American Board of Certification and serves on its board of directors. When Congress enacted subchapter V of chapter 11, it created a unique type of trustee. Chapter 7 trustees are responsible for liquidating assets and paying creditors.1 Chapter 12 and 13 trustees receive and disburse funds while also making sure that the debtor complies with his/her obligations.2 A trustee under legacy chapter 11 replaces the debtor in possession (DIP) and takes over the responsibility to file a plan or otherwise get creditors paid.3 A subchapter V trustee…

Four professionals were among those named to the Nashville Post’s “In Charge 2022” list. All are based in Nashville, Tenn. David M. Anthony of Anthony Legal PLLC has been an ABI member since 2007. Thomas W. Lawless of Lawless & Associates, PC has been an ABI member since 2001. William L. Norton of Bradley Arant Boult Cummings LLP has been an ABI member since 1983. Robert V. Sartin of Frost Brown Todd LLC has been an ABI member since 2003. Alan R. Rosenberg of Markowitz, Ringel, Trusty + Hartog, PA (Miami) has been named to the 2022 “On the Rise” list by the Daily Business Review. He has been an ABI member since 2017 and is a 2020 ABI “40 Under 40” honoree. Kenneth A. Rosen of Lowenstein Sandler LLP…

Coordinating Editor Aaron M. Kaufman Gray Reed; Dallas Coordinating Editor Patrick A. Clisham Engelman Berger, PC Phoenix Coordinating Editor Christina Sanfelippo Cozen O’Connor Chicago Aaron Kaufman is a partner with Gray Reed in Dallas. Patrick Clisham is the managing shareholder of Engelman Berger, PC in Phoenix and a member of ABI’s Board of Directors. Christina Sanfelippo is an associate with Cozen O’Connor in Chicago and co-chair of ABI’s Young and New Members Committee. “Solvent-Debtor Exception” Upheld; Cardelucci and § 726(a)‌(5) Do Not Apply to Unimpaired Claims A debtor’s assets sometimes exceed its liabilities. When such a solvent debtor proposes a reorganization plan, that debtor may seek to avoid soliciting certain creditors’ votes by leaving those claims “unimpaired” under the plan.1 Before the enactment of the Bankruptcy Code in 1978, and…

Only $100! THE LARGEST ONLINE CONSUMER PRACTICE EVENT OF THE YEAR NOVEMBER 10-18, 2022 Join us November 10-18 for the virtual 2022 Consumer Practice Extravaganza, the premier consumer debt event of the year. Leading practitioners will explore the latest in consumer debtor practice through more than 30 hours of innovative online programming. This not-to-be missed event is only $100. Six broad session tracks offer something for everyone: Student Loans, Technology and the Future, Subchapter V of Chapter 11, Well-Being, Vendors and Nontraditional Practice. Attendees can select sessions from any track, and all sessions will conveniently remain available to attendees for 30 days after the conclusion of the conference. HERE’S WHAT LAST YEAR’S ATTENDEES HAD TO SAY: “This was perhaps the best CLE I have had in 30+ years of practice.”…

Brandon R. Wood U.S. Bankruptcy Court (N.D. Ga.); Atlanta Brandon Wood is a law clerk for Hon. Sage M. Sigler in the U.S. Bankruptcy Court for the Northern District of Georgia in Atlanta. One thing is clear about the practice of bankruptcy law: You cannot “dabble” in it.1 You must know the ins and outs or have counsel who does. One area where this adage holds true is protecting state trial court judgments from discharge. For a holder of a state court judgment, there are few things more frustrating than the defendant filing for bankruptcy. Upon their legal transformation from defendant to debtor, the power to enforce the judgment you received in state court dissipates. Now you are subject to a new set of rules and a new system determining…

Andrew V. Alfano Pillsbury Winthrop Shaw Pittman LLP New York Andrew Alfano is a senior associate with Pillsbury Winthrop Shaw Pittman LLP in New York. Chapter 10 of the Texas Business Organizations Code permits an entity to undergo a “divisive merger” by splitting into two or more new entities and apportioning the assets and liabilities of the original entity among the new entities pursuant to a plan of merger.1 The Texas statute is the subject of recent controversy because of its use by businesses to shed mass tort liabilities by using the so-called “Texas Two-Step.” Step one of the Texas Two-Step involves an entity splitting into two or more new entities. One of the new entities is apportioned liabilities and limited assets (BadCo), and the other new entity is apportioned…

Gabe Fried Hilco Streambank, LLC New York Richelle Kalnit Hilco Streambank, LLC New York Gabe Fried is CEO of Hilco Streambank, LLC and pioneered the distressed brokerage of intangibles during his roles as liquidator, auctioneer, investor, buyer’s agent, expert witness and appraiser. Richelle Kalnit is the company’s senior vice president and manages its intellectual property disposition engagements. They are based in New York. Auctions are a popular method for liquidating intangible assets in insolvencies, both in and out of court. These assets include patents, trademarks, domain names and software, all of which frequently appear in restructuring cases. For professionals responsible for liquidating intangible assets, auctions meet several objectives that are difficult to achieve in a private sale. First, auctions often create a credible and public market test of value, which…

Daryl J. Smith Office of the Chapter 13 Standing Trustee Memphis, Tenn. Daryl Smith is a senior staff attorney to Chapter 13 Standing Trustee Sylvia Ford Brown in Memphis, Tenn. Cancer does not discriminate; it can touch anyone at any time. Similarly, debt does not discriminate. Like cancer, debt can be a disease impacting a person’s life. Also like cancer, debt affects all ethnicities, the young, the old, the rich, the poor, the uneducated and the educated. Along the lines of a harsh disease, debt can eat away at a person’s finances, mental health and family life, and this is why it is critical that people take debt seriously. There are many types of debts: secured, unsecured, taxes and domestic-support obligations. But what are the treatments for debt? One tool…

REGISTER TODAY AT www.abiwlc.org LA QUINTA RESORT & CLUB, LA QUINTA, CA CAN’T-MISS KEYNOTE AND ENTERTAINMENT We admit it: We are so excited for you to experience all that we have lined up for this year’s Winter Leadership Conference! As part of the annual celebration honoring this year’s class of “40 Under 40” honorees, Sebastian Terry will provide the Winter Leadership Conference keynote. Known worldwide for pursuing an incredible list of 100 things that he wants to achieve before he dies, his story is surprisingly not about a bucket list. It’s about something more far-reaching: permission, choice, growth and connection. Guaranteed to make you laugh and cry, and inspire motivation, his “100 Things” keynote presentation will re-engage, connect and encourage your organization to move forward as one. The Winter Soirée…

What Does Your ABI Membership Profile Say About You? ABI’s Membership Directory is one of the most visited pages on ABI’s website, and we have just rolled out some new fields sure to make your profile even better! Your directory listing can now include additional information on demographics, military service, preferred pronouns and more. Please take a moment to update your information and ensure that your directory listing is as complete as possible. Check your member profile at abi.org/directory. Fall Is Jam-Packed with ABI Events ABI has been busy this fall bringing you top-notch programming on a wide variety of topics, and the rest of the season continues the trend! Be sure to check out any or all of these upcoming events at abi.org/events. Second Annual Consumer Practice Extravaganza Spanning…

ABI BOARD OF DIRECTORS EXECUTIVE COMMITTEE MEMBERS Chair Hon. Barbara J. Houser (ret.) U.S. Bankruptcy Court (N.D. Tex.); Dallas Immediate Past President Robert P. Reynolds Reynolds, Reynolds & Little, LLC; Tuscaloosa, Ala. President Hon. Kevin J. Carey (ret.) Hogan Lovells US LLP; Philadelphia President-Elect Soneet R. Kapila KapilaMukamal, LLP; Fort Lauderdale, Fla. Vice President-Research Grants Hon. Michelle M. Harner U.S. Bankruptcy Court (D. Md.); Baltimore Vice President-Communications & Information Technology Hon. Bruce A. Harwood U.S. Bankruptcy Court (D. N.H.); Concord Vice President-Diversity & Inclusion Eve H. Karasik Levene, Neale, Bender, Yoo & Golubchik, LLP; Los Angeles Vice President-Publications Paul D. Leake Skadden, Arps, Slate, Meagher & Flom LLP; New York Vice President-International Affairs Stephen D. Lerner Squire Patton Boggs; Cincinnati Vice President-Education Douglas L. Lutz Frost Brown Todd LLC; Cincinnati…

Coordinating Editor Maurice “Mac” VerStandig The VerStandig Law Firm, LLC; Las Vegas Mac VerStandig is the managing partner of The VerStandig Law Firm, LLC in Las Vegas and represents private lenders in chapter 11 cases. Pending legislation in the House and Senate, highlighted by efforts to impose certain compulsory disclosure requirements on U.S. Supreme Court justices, would also serve to partially reshape the ethical rules applicable to bankruptcy judges.1 The Supreme Court Ethics, Recusal and Transparency Act of 2022 (SCERTA) has been notably advertised as an effort to compel “the justices of our nation’s highest court to hold themselves to the highest standards of ethical conduct.”2 The proposed legislation has now been reported out of committee in the House while remaining before the Senate Committee on the Judiciary. It may…

Daniel J. Casamatta U.S. Trustee Program Kansas City, Mo. Michael J. Bujold U.S. Trustee Program Washington, D.C. Daniel Casamatta is Acting U.S. Trustee for Region 13 (Arkansas/Missouri/Nebraska) and is based in Kansas City, Mo. Michael Bujold is associate general counsel for General and Administrative Law with the U.S. Trustee Program in Washington, D.C. On Feb. 19, 2020, the Small Business Reorganization Act (SBRA)1 became effective and dramatically changed the way most chapter 11 small business debtors reorganize. The SBRA has resulted in a more efficient and cost-effective process for distressed small business owners and creditors alike2 that, by all current measures, works as Congress intended.3 Consistent with its mission to promote the integrity and efficiency of the bankruptcy system, the U.S. Trustee Program (USTP) plays an important and active role…

Katherine M. Fix Robinson & Cole, LLP Philadelphia Annecca H. Smith Robinson & Cole, LLP Hartford, Conn. Katherine Fix is counsel with Robinson & Cole, LLP in Philadelphia, and Annecca Smith is an associate in the firm’s Hartford, Conn., office. Both practice in the firm’s Bankruptcy and Reorganizations Group. In Valley National Bank v. Warren (In re Westport Holdings Tampa Ltd. P’ship),1 the U.S. Court of Appeals for the Eleventh Circuit held that the possibility of litigation neither imparts “person-aggrieved” standing to a liquidating trustee-adversary proceeding defendant nor implicates Bankruptcy Code protection. Thus, an adversary-proceeding defendant cannot appeal bankruptcy court approval of a litigation funding agreement if the only direct and pecuniary harm they can state is a fear of future litigation against them. Further, the future of person-aggrieved standing…

Coordinating Editor Caleb Chaplain U.S. Bankruptcy Court (W.D. Va.); Harrisonburg M. Christine Maggard Brock & Scott, PLLC Richmond, Va. Caleb Chaplain is the career law clerk for Hon. Rebecca B. Connelly of the U.S. Bankruptcy Court for the Western District of Virginia and an adjunct professor at Washington and Lee University School of Law. Christine Maggard is a senior associate with Brock & Scott, PLLC in Richmond, Va., and an adjunct faculty member at Virginia Commonwealth University. The Coronavirus Aid, Relief and Economic Security (CARES) Act created an option for homeowners in distress or claiming distress during the COVID-19 pandemic.1 The CARES Act, along with the accompanying rules and regulations stemming from the attendant social and political pressures, imposed an expedited procedure for the granting of forbearances to consumers. The…

Edward Neiger ASK LLP; New York David Stern ASK LLP; St. Paul, Minn. Edward Neiger is co-managing partner of ASK LLP in New York and oversees the firm’s Bankruptcy, Mass Tort and Personal Injury Divisions. He is also a 2019 ABI “40 Under 40” honoree. David Stern is an associate in the firm’s St. Paul, Minn., office and represents clients in mass tort bankruptcy litigation. A future claims representative (FCR) is a person in a mass tort bankruptcy who is “appointed to represent and protect the interests of persons with future unknown claims.”1 Appointed by the bankruptcy court,2 an FCR is paid by the debtor’s estate, upon court approval.3 The FCR’s statutory role is “protecting the rights of persons that might subsequently assert demands,”4 and typical tasks may include familiarizing…

Deiona Camargo University of Kentucky College of Law Lexington, Ky. Deiona Camargo is a second-year student at the University of Kentucky J. David Rosenberg College of Law. She is a staff editor for Volume 15 of the Kentucky Journal of Equine, Agriculture & Natural Resources Law and a board member of the school’s Moot Court. In the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), Congress limited the automatic stay “for debtors who have filed for bankruptcy within the past year.”1 Among other things, BAPCPA discourages “bad-faith repeat filings” by terminating the automatic stay on the 30th day after a debtor files a second bankruptcy petition within one year of a previous bankruptcy case.2 Specifically, it provides: (3) if a single or joint case is filed by or…

July (partial list) Adina L. Pollan McGlinchey Stafford PLLC Jacksonville, Fla. T. Daniel Reynolds Jones Day Cleveland Ty Riha DCM Services, LLC Bloomington, Minn. Durien Sanchez Gordon Brothers Group, LLC Boston Alexa Scunziano Brooklyn Law School Brooklyn, N.Y. Keith Sharfman St. John’s University School of Law Jamaica, N.Y. Hon. John K. Sherwood U.S. Bankruptcy Court (D. N.J.) Newark, N.J. Paula Sosamon Paladin Frisco, Texas Samuel Sternburg University of Denver Englewood, Colo. Robert Suzenski Legal Eagle Services Co. Chandler, Ariz. Dimitrios Tsilikis Univeristy of Toronto New York Paul S. Valentine KCP Advisory Group Forestdale, Mass. Margaret Ann Vesper Ballard Spahr LLP Wilmington, Del. Marc E. Voisenat Alameda, Calif. Nicky R. Welch BDO Consulting Group, LLC Miami Brooke Wilson U.S. Bankruptcy Court (N.D. Cal.) Oakland, Calif. Todd Wuertz Hermosa Beach, Calif. Mason…