Category: Bankruptcy

​​The Texas Supreme Court is set to hear oral arguments this fall to clarify what the Fifth Circuit Court of Appeals referred to as a ‘muddy’ issue regarding whether or not a member’s interest in a Texas Limited Liability Company (LLC) is exempt from creditor claims in bankruptcy. The question is one of state law…

​​It takes significant effort and drive to run a business, and a company’s financial instability can threaten its future. When a business is struggling to keep up with its expenses, debts, and other financial obligations, swift action is necessary. Companies have a few options they can consider to regain a solid footing before considering bankruptcy….

​​The US Bankruptcy Code (USBC) provides finality and predictability for entities that purchase or lease property from a Chapter 11 Bankruptcy estate. Federal law upholds the validity of the sale or lease even if the bankruptcy court’s approval of the transaction is challenged on appeal. Federal courts were split on whether they had jurisdiction to…

​​The Fifth Circuit recently ruled in Raymon James & Associates Inc. v. Jalbert that a confirmed bankruptcy plan can bar a party from asserting certain counterclaims if they failed to file a proof of claim. This decision underscores the critical role of bankruptcy plans in determining the rights and obligations of parties involved in a…

​​In City of Chicago v. Fulton, the U.S. Supreme Court held that creditors do not violate the automatic bankruptcy stay when they merely retain property they took before the bankruptcy petition was filed. Now, as this decision has been legal precedent for over a year, stakeholders are beginning to learn how courts are interpreting and…