Bank Law Monitor

Bank Law Monitor

A Legal Blog for the Financial Services Industry

Category Archives: Bankruptcy

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Expanded Bankruptcy Subchapter V Eligibility for Small Business Debtors Extended for Another Year

Posted in Bankruptcy, COVID-19
On March 27, 2021, the COVID-19 Bankruptcy Relief Extension Act of 2021 was signed into law. This legislation extends the increased debt limit for small businesses to be eligible to reorganize under subchapter V of the Bankruptcy Code. While the increase in this debt limit remains temporary, the extension gives many small businesses another year… Continue Reading

Temporary Amendment to Bankruptcy Code Opens Opportunities for Commercial Landlords and Tenants to Negotiate Deferred Payment Arrangements

Posted in Bankruptcy
Recent legislation has expanded opportunities for commercial landlords and tenants to negotiate deals to defer certain rent payments during the COVID-19 pandemic with less fear of later losing the arrearage payments as preferences if the tenant files for bankruptcy. These changes, enacted in the Consolidated Appropriations Act, 2021 (CAA), provide a safe harbor that can… Continue Reading

United States Supreme Court Holds “Mere Retention” of Bankruptcy Estate Property Does Not Violate the Automatic Stay

Posted in Bankruptcy, Debt Collection
On January 14, 2021, the United States Supreme Court issued its opinion in City of Chicago v. Fulton, addressing whether the “mere retention” of bankruptcy estate property constituted an act to “exercise control over property of the estate” in violation of the automatic stay under § 362(a)(3) of the Bankruptcy Code. In an 8-0 opinion,… Continue Reading