Bankruptcy Law Commons^™

The Valuation Of Crypto Currency Mining Property Under 11 U.S.C. § 506(A)(1), Michael Galletti

Bankruptcy Research Library

(Excerpt)

Section 506(a)(1) of title 11 of the United States Code (the "Bankruptcy Code") provides that a secured creditor's claim is "a secured claim to the extent of the value of such creditor's interest in the estate's interest in such property . . . and is an unsecured claim to the extent that the value of such creditor's interest . . . is less than the amount of such allowed claim." The valuation of collateral is determined "in light of the purpose of the valuation and of the proposed disposition or use of such property." However, the Bankruptcy Code is …

Reconsideration Of A Previously Allowed Or Disallowed Claim Under Section 502(J) Of The Bankruptcy Code In New York And Delaware., Kalina Mesrobian

Bankruptcy Research Library

(Excerpt)

Section 502(j) of title 11 of the United States Code (the "Bankruptcy Code") states that "[a] claim that has been allowed or disallowed may be reconsidered for cause" in a bankruptcy case. 11 U.S.C.S. §502(j). Section 502(j) further states that "a reconsidered claim may be allowed or disallowed according to the equities of the case." Id. There is no definition of "for cause" or "according to the equities of the case," but the courts have generally held that reconsideration ultimately "lies within the discretion of the court." This article will analyze the scenarios under which a bankruptcy court in …

Debtors Entitled To Only Prospective Relief For Extra Trustee Fees Paid Under Unconstitutional Amendment To Section 1930 Trustee Fee Statute, Joseph Parone

Bankruptcy Research Library

(Excerpt)

The United States Trustee Program comprises eighty-eight of the ninety-four Federal judicial districts. The U.S. Trustee Program is funded through the United States Trustee System Fund, a large portion from debtor trustee fees. U.S. Trustee districts are required to implement the trustee fee structure outlined by the Section 1930 fee statute, which is updated through congressional amendment. However, the Judicial Conference, which oversees the Bankruptcy Administrator Program, had discretion to impose trustee fees outlined in section 1930 on debtors within the remaining six Federal judicial districts under their administration.

In the backdrop of this legislative scheme is the Uniformity …

U.S. Court’S Role In Approving The Sale Of U.S. Assets In A Chapter 15 Case, Jamie Vang

Bankruptcy Research Library

(Excerpt)

Chapter 15 cases deal with cross-border insolvency and allow U.S. courts to recognize foreign bankruptcy proceedings and cooperate with foreign courts. Upon recognition of a foreign main proceeding, section 363 of title 11 of the United States Code (the "Bankruptcy Code") will apply to the transfer of U.S. assets. However, the standard for approving a sale under section 363 in a chapter 15 case is not specified.

This article analyzes the bankruptcy court decisions on whether chapter 15 requires U.S. courts to conduct their own individual analysis or to defer to the foreign court in approving the sale of …

The Objective Establishment Of A Ponzi Scheme Is Sufficient To Establish A Debtor’S "Actual Intent To Defraud" Creditors In Fraudulent Conveyance Actions, Sarah Wilkinson

Bankruptcy Research Library

(Excerpt)

A business entity that meets the objective elements of a Ponzi scheme gives rise to the presumption that a debtor possesses the requisite mens rea—the "actual intent to defraud" creditors—in fraudulent conveyance actions. Section 548 of title 11 of the United States Code (the "Bankruptcy Code") "authorizes a trustee to avoid any transfer of funds made by a debtor with (a) an 'actual intent to hinder, delay, or defraud' creditors; or (b) for less than a 'reasonably equivalent value,' among other criteria." Fraudulent conveyance actions are "often called 'clawback' actions." These actions "seek to recover the false returns received …

Adjudicatory Comity As An Alternative To Recognition Under Chapter 15 Of The Bankruptcy Code For Foreign Bankruptcy Proceedings, Janet Wong

Bankruptcy Research Library

(Excerpt)

In the absence of Chapter 15 recognition, foreign debtors may still rely on the doctrine of adjudicatory comity for recognition of a foreign order in some instances. However, because of the limitations on the applicability of adjudicatory comity alone, Chapter 15 recognition may be a safer option for foreign debtors.

In 2005, Congress enacted Chapter 15 under Title 11 of the United States Code (the "Bankruptcy Code") to "provide effective mechanisms for dealing with cases of cross-border insolvency." Under Chapter 15, a foreign representative may apply to the court for recognition of a foreign bankruptcy proceeding. Upon recognition of …

Restructuring Ruritania: Bankruptcy, Sovereign Debt, And The Equity Receivership, Nathan B. Oman

Faculty Publications

The traditional legal story of sovereign restructuring goes something like this: foreign governments cannot file for bankruptcy under domestic law. When faced with the need to restructure unsustainable debts, they must negotiate with each of their creditors. Since the late 1980s, private debt has been held by increasingly diverse and dispersed bondholders, making renegotiation more difficult. Defaulting debtors face two basic problems: first, they have no process analogous to the automatic stay in bankruptcy, which can pause litigation by creditors and buy time for an orderly reorganization; second, and more importantly, they have no process analogous to the cramdown provisions …