Temporary Pandemic-Related Bankruptcy Code Provisions
Bankruptcy Code provisions temporarily applied because of the COVID-19 pandemic. The Means for Monthly Income Calculation Individual debtor’s disposable income cannot exceed a certain level and the debtor’s expenses [...]
Retention of Bankruptcy Debtor’s Property After Bankruptcy Is Not a Violation of the Automatic Stay
The Supreme Court finally settled a long-standing question as to whether a creditor is required to return property of a debtor after bankruptcy has been filed. The answer is that [...]
Bankruptcy Court Rules that Eviction Moratorium for COVID Does Not Apply in Bankruptcy
In a case of first impression, the Bankruptcy Court for the Central District of California, Los Angeles Division, issued a recent opinion in In re Nikolay Machevsky, No. 14-29611 (Bankr. [...]
Temporary Extension of Time for Debtor-Tenants to Decide Whether to Assume or Reject Certain Leases
On December 27, 2020, President Trump signed into law the Consolidated Appropriations Act of 2021 (CAA). The CAA includes a temporary extension for debtor-tenants to assume or reject certain leases. [...]
The Effect of the COVID Act on the Bankruptcy Preference Laws
The “Consolidated Appropriations Act, 2021” (“COVID Act”) effective December 27, 2020 amends Section 547 of the Bankruptcy Code and protects suppliers and landlords through agreement to defer payments made after [...]
Commercial Landlord Tenant Issues in Bankruptcy — Especially During the Pandemic
Introduction Commercial tenants are defaulting at a faster rate due to the pandemic. But whether we are in a pandemic or not, commercial landlords need to know what to [...]
The Necessity for Co-Tenancy and Other Related Clauses
The retail apocalypse began long before COVID-19 . With many retailers already over-leveraged and shopping patterns changing, retailers were already shuttering stores, seeking a reduction in rent and/or filing bankruptcy. [...]
Some Debts Are Not Dischargeable in Bankruptcy
It’s a common misconception that if someone files bankruptcy, all claims against them will be discharged leaving few assets to be split between creditors. In fact, several kinds of [...]
Bankruptcy Usage of Key Employee Retention Plans and Key Employee Incentive Plans
Introduction Creditors in mega-bankruptcies and people in general are up in arms over the ridiculous bonuses companies are giving their “key” employees and executives -- styled as “retention bonuses.” [...]
Get Out of Jail Cards for Leveraged Buyout Fraudulent Transfers
Though the pandemic is the cause of the rising number of retail bankruptcies, major retailers were facing cash flow and insolvency issues prior to COVID-19. Many of them were [...]
