Bankruptcy Law Commons^™

Two Valid Approaches For Determining Whether “Taxes” Get Priority In Bankruptcy Cases, Jonathan Fuller

Bankruptcy Research Library

(Excerpt)

In bankruptcies, tax status often effects whether claims are entitled to priority. Thus, debates about whether charges are penalties or taxes date back to the early twentieth century. In 1930, the Supreme Court established that courts are not bound to the characterization given to a charge by the municipality that created it. Rather, courts have a duty to consider the “real nature” and “effect” of the charge. Accordingly, different circuits have implemented different approaches to make these determinations.

This Article examines the ambiguity among circuits regarding charges’ “tax” status and resulting priority entitlement. Part I outlines In re Lorber …

The Third Circuit Requires Inequitable Conduct By A Higher-Priority Creditor To Equitably Subordinate Its Debt To A Lower-Priority Creditor, Caitlyn R. Marino

Bankruptcy Research Library

(Excerpt)

Title 11 of the United States Code (the “Bankruptcy Code”) implements a basic priority system under section 507 to determine the order a bankruptcy court will distribute the assets of an estate. The classic hierarchy begins with secured creditors, then “[s]pecial classes of creditors, such as those [holding] certain claims for taxes or wages . . . [then] low-priority creditors, including general unsecured creditors . . . [followed by] equity holders . . . [who] receive nothing until all previously listed creditors have been paid in full.” Section 510(c) of the Bankruptcy Code authorizes disturbing the fundamental distribution scheme …

Small Business Owners Are Entitled To Exempt Reasonable Compensation From The Bankruptcy Estate, Rachel Mcgarry

Bankruptcy Research Library

(Excerpt)

The COVID-19 pandemic greatly impacted small business owners in the United States. In March 2020, the United States Small Business Administration (“SBA”) began aiding eligible small business owners in the form of Economic Injury Disaster Loans (“EIDL”). EIDLs were made available to small businesses that were unable to meet existing financial obligations for necessary operating costs. Those funds can be used to “make regular payments for operating expenses, including payroll.”

This article addresses whether small business owners are entitled to pay themselves reasonable compensation as earnings for their efforts, which in turn may be exempted from their future bankruptcy …

The Effect Of Rejection Of A Copyright License On A Non-Debtor Licensee, Thomas Meininger

Bankruptcy Research Library

(Excerpt)

In general, a trustee may assume, reject, or assign an executory contract of the debtor under title 11 of the United States Code (the “Bankruptcy Code”). Courts have generally held that intellectual property license agreements are executory contracts. If the license is an exclusive copyright license, it is a transfer of ownership under title 17 of the United States Code (the “Copyright Act”). Thus, some courts treat a copyright license as transfer of ownership, not an executory contract.

This article explores the rights and obligations of a non-debtor licensee when a debtor-licensor rejects a copyright license under the Bankruptcy …

A Secured Creditor’S Ability To Have An Automatic Stay Lifted Against A Single Asset Real Estate, Zachary Rozycki

Bankruptcy Research Library

(Excerpt)

The filing of a petition for relief under title 11 of the United States Code (the “Bankruptcy Code”) results in an automatic stay, which generally enjoins any creditor from taking action against the debtor or its property. Pursuant to section 362(d)(1) of the Bankruptcy Code, an automatic stay may be terminated upon a showing of “cause.” Additionally, under section 362(d)(2) a stay may be terminated as to property if the debtor has no equity in the property, and the property is not necessary to an effective reorganization. Further, under section 362(d)(3), an automatic stay may be lifted as to …

Avoidance Of An Unauthorized Post-Petition Transfer Of Intellectual Property Under Section 549 Of The Bankruptcy Code, Kathryn-Rose Russotto

Bankruptcy Research Library

(Excerpt)

Under section 549 of title 11 of the United States Code (the “Bankruptcy Code”), a trustee may avoid an unauthorized post-petition transfer of property of the debtor’s estate. Property is not limited to tangible property. Thus, a trustee can avoid a post-petition transfer of intangible assets, including intellectual property.

This article explores a trustee’s ability to avoid a post-petition transfer of intellectual property. Part I analyzes the legal standard for avoidance of unauthorized post-petition transfers under section 549. Part II examines section 549 in relation to intellectual property. Part III discusses the procedure for remedies a trustee can seek …

Non-Income Producing Properties That Never Operated May Be Single Asset Real Estate Under The Bankruptcy Code, Paul R. Spagnoli

Bankruptcy Research Library

(Excerpt)

Section 101 of title 11 of the United States Code (the “Bankruptcy Code”) includes a definition for a single asset real estate (“SARE”). A debtor that owns SARE is subject to certain special rules. In particular, the automatic stay will be lifted, upon the request of a secured creditor as to the SARE unless the debtor has either (i) begun making payments with interest at the nondefault rate to the secured creditor or (ii) has filed a plan of reorganization which has a reasonable possibility of being confirmed within a reasonable period of time. This article addresses whether a …

Debtor Needs To Have Benefitted From Fraud To Be Barred A Discharge Under 11 U.S.C. § 523(A)(2)(A), Elizabeth Tighe

Bankruptcy Research Library

(Excerpt)

Title 11 of the United States Code (the “Bankruptcy Code”) provides that a court may grant a debtor a discharge of its debts, subject to certain conditions and exceptions. One exception to dischargeability is set forth in section 523(a)(2)(A), which bars a discharge from debt “for money, property, services, or an extension, renewal, or refinancing of credit, to the extent obtained by . . . false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor's or an insider's financial condition.”

A key phrase in the statute is “obtained by” and courts have applied a …

Covid-19 & The Warn Act During A Bankruptcy Case, Audrey Victor

Bankruptcy Research Library

(Excerpt)

The Worker Adjustment and Retraining Notification Act (“WARN Act”) provides that “an employer shall not order a plant closing or mass layoff until the end of a 60-day period after the employer serves written notice of such order to each impacted employee.” Under the WARN Act, a plant closing is “permanent or temporary shutdown of a single site of employment, or one or more facilities or operating units within a single site of employment….” A mass layoff is “a reduction in force which…(a) is not the result of the plant closing; and (b) results in an employment loss at …

Third-Party Releases Under The Bankruptcy Code After Purdue Pharma, Jeanne L. Schroeder, David G. Carlson

Articles

The biggest bankruptcy case ever (as measured by unsecured claims against a debtor-in-possession) is In re Purdue Pharma, LLC. The bankruptcy court affirmed a plan discharging the Sackler family (equity owners and often officers of Purdue) of all “derivative” claims that belonged to the debtor-in-possession. The settlement was bought for a substantial sum payable over time by the Sacklers. A debtor-in-possession is the sole owner of a derivative claim and has the power to bind all the creditors to a settlement. Under the Bankruptcy Code, a plan discharging derivative claims is confirmable. In fact, as we will, show, a great …

Declaring Dankruptcy: Exploring Avenues To Relief For Debtors Involved With Cannabis, Danny O'Connor

University of Cincinnati Law Review

No abstract provided.

In Re Weinstein Company Holdings Llc: An Overly Systematic Approach To Executory Contracts Limits Much-Needed Flexibility, Thomas Hauk, Andrew Schwartz

Villanova Law Review (1956 - )

No abstract provided.

Penerapan Doktrin Piercing The Corporate Veil Terhadap Negara Pada Holding Badan Usaha Milik Negara, Deny Adi Pratama

"Dharmasisya” Jurnal Program Magister Hukum FHUI

The lack of regulation regarding group company's conception in Indonesia provokes several problems. The policy on establishing holding BUMN in Indonesia only supervised by Government Regulation Number 72 Year 2016 concerning Change of Government Regulation Number 44 Year 2005 regarding Procedure of Participation and Administration Funds upon State-Owned Enterprises and Limited Liability Company. However, the provision which becomes the legal basis underlying BUMN and Limited Liability Company are supervised upon regulation equals to act. Those of which cause a contradiction amongst both provisions of laws and regulation. The rights and obligations along with the country's responsibilities as a public legal …

Pembentukan Holding Company Badan Usaha Milik Negara (Bumn) Di Sektor Infrastruktur Ditinjau Dalam Persaingan Usaha Tidak Sehat, Wiesma Mara Rangga

"Dharmasisya” Jurnal Program Magister Hukum FHUI

That a large number of state-owned enterprises (SOEs) in infrastructure has caused competition, especially when competing against one another in participating in the same tender. This is not in line with the synergy plan between SOEs, which is one of the essential pillars. SOEs belonging to similar value chain groups should work together to accelerate economic growth and synergies at various levels through corporate, transaction, and operational restructuring. Optimizing the formation of infrastructure holding can be done through collaboration and synergy between SOE entities, strengthening and increasing the capacity of each holding member, and integrating infrastructure development. However, the plan …

Masuknya Tenaga Pendidik Asing Di Bidang Teknologi Informasi Dalam Rangka Liberalisasi Pendidikan Tinggi Dalam Menjawab Permasalahan Kebutuhan Atas Sumber Daya Manusia Yang Berkualitas Di Era Industri 4.0, Rodeen Chenggaliex

"Dharmasisya” Jurnal Program Magister Hukum FHUI

Education liberalization has become a hot topic of discussion in Indonesia lately, starting with bringing in foreign higher education leaders to Indonesian universities; in the Industrial 4.0 era, Indonesia still lacks qualified information technology experts to support industry 4.0. Educational sciences in Indonesia are now considered to be still unable to compete with educational sciences abroad. The liberalization of education will undoubtedly have a positive impact on the development of academic science in the development of the Indonesian nation. The problem is this paper focuses on the issue of the low quality of education in the field of information technology …

Perbandingan Sistem Hukum Civil Law Dan Common Law Dalam Penerapan Yurisprudensi Ditinjau Dari Politik Hukum, Praise Juinta W.S. Siregar

"Dharmasisya” Jurnal Program Magister Hukum FHUI

The legal system is related to the concept of law, where the two things have an inseparable relationship with each other. In principle, the legal system regulates the life of a community so that conflicts do not occur, where if the conflict is unavoidable, then the legal system has an important role in resolving the conflict. The legal system in the judiciary has a major influence in the application of the law, especially for judges in examining and deciding a case. The Panel of Judges in deciding a case will definitely pay close attention to the legal system in its …

Kebijakan Countercyclical Sebagai Upaya Kesejahteraan Masyarakat, Made Cinthya Puspita Shara

"Dharmasisya” Jurnal Program Magister Hukum FHUI

Indonesia's high level of economic growth is in line with the development of businesses that increase capital by making credit agreements with financial institutions. However, the state spread of the co-19 pandemic case has been declared a national disaster, impacting the implementation of credit agreements between the debtor and financial institutions. Economic problems make it difficult for people to carry out their obligations. A countercyclical buffer policy is a buffer that is carried out by providing additional capital to replace losses if excessive credit growth occurs, which has the potential to disrupt financial stability. Bank Indonesia Policy PBI No.17/22/PBI/2015, also …

Pengelolaan Royalti Dari Pencipta Lagu Yang Tidak Terdaftar Di Lembaga Manajemen Kolektif Oleh Lembaga Manajemen Kolektif Nasional, Mohamad Thaufiq Rachman

"Dharmasisya” Jurnal Program Magister Hukum FHUI

Royalty is a reward received by the author or owner of the related right concerning the utilization of their Economic Rights following Article 1 point 21 of Law No. 28, 2014 regarding Copyright ("UUHC 2014"). Royalty could also be interpreted as a form of appreciation for the Author's Works, such as song and/or music. Encouraging the spirit of industry players, including songwriters, is essential for continuous growth. As mentioned in the general explanation section of UUHC 2014, Copyright is the most important basis of the national creative economy. With the fulfillment of the protection and development of this creative economy, …

Pengakhiran Kontrak Sebelum Terjadi Wanprestasi Oleh Pihak Yang Mengantisipasi Kegagalan Pelaksanaan Kewajiban, M. Hillman Mehaga S

"Dharmasisya” Jurnal Program Magister Hukum FHUI

Termination of an agreement/contract in a situation where a party has known that he/she/it will not be able to perform its obligation(s) based on the agreement/contract to avoid the occurrence of the larger losses if the agreement/contract is still ongoing. Under Indonesian civil law, a defaulting party or a party who has anticipated that he/she/it will fail to meet obligation(s) does not have the right to file a claim to terminate an agreement/contract. This means that, this party can only be passive until the default actually happens and wait until the non-defaulting party to file the claim with the claim …

Peranan Perusahaan Penjaminan Dalam Mengatasi Permasalahan Umkm Mengakses Kredit Di Sektor Perbankan (Setelah Berlakunya Undang-Undang Nomor 1 Tahun 2016 Tentang Penjaminan), Luh Putu Prema Shanti Putri Saraswati

"Dharmasisya” Jurnal Program Magister Hukum FHUI

Micro, Small and Medium Enterprises (MSME’s) have an important role in the development of the Indonesian economy. So far, MSME’s are still faced with various kinds of obstacles, one of which is that MSMEs still face problems related to limited access to funding to financial institutions. Limited access to funding to financial institutions is partly due to the limited assets owned by MSME’s to be used as collateral for bank loans. Guarantee is the activity of providing guarantees by the Guarantor for the fulfillment of Guaranteed financial obligations to the Recipient of the Guarantee. Guarantee Company is a legal entity …

Perbandingan Penyelesaian Sengketa Lingkungan Hidup Melalui Mekanisme Gugatan Warga Negara (Citizen Lawsuit) Di Indonesia Dan Amerika Serikat, Listyalaras Nurmedina

"Dharmasisya” Jurnal Program Magister Hukum FHUI

A citizen lawsuit is a lawsuit filed by citizens against state officials that cause negligence and cause losses. This negligence is an act against the law (onrechtmatige overhead daad), where the state is ordered to improve its performance and issue a policy for general governing policies (regeling). It is intended to ensure that the negligence that previously occurred will not be repeated. A citizen lawsuit is almost similar to a class action lawsuit because it has the same thing, namely that the lawsuit is filed involving the interests of many people represented by one or more people. The difference is …

Perlindungan Investasi Terhadap Pelaku Usaha Dalam Kegiatan Penanaman Modal Di Bidang Pertambangan (Studi Kasus Pada Pt. Emas Mineral Murni), Liani Hasibuan

"Dharmasisya” Jurnal Program Magister Hukum FHUI

The role of law in supporting investment is urgently needed in order to create legal certainty. According to this, this article intended to examine how investment protection is for investors starting businesses in the mining sector. The problems which were discussed in this article are about the granting of Mining Business Permits (IUP) through the system called Online Single Submission (OSS), which is the legality to start mining activities by observing Law No. 25 of 2007 on Capital Investment and Law No. 4 of 2009 on Mineral and Coal Mining. The research of the case, which occurs in the Ruling …

Perspektif Kitab Undang-Undang Hukum Perdata Dan Uu Nomor 13 Tahun 2003 Tentang Ketenagakerjaan Terkait Dengan Perlindungan Hukum Terhadap Pengusaha Terhadap Wanprestasi Ikatan Dinas Yang Dilakukan Oleh Pekerja, Lia Amalia

"Dharmasisya” Jurnal Program Magister Hukum FHUI

Labor issues cannot be separated from the Agreement between the Worker and the Employer, both as the initial Agreement when implementation or an additional Agreement such as the official bond Agreement. Law No.13 of 2003 on Manpower has regulated that every employee who is bound by a contract to work for/ serve the enterprise for a certain period in return for training or education. She/He is not allowed to resign during the term of the official binding Agreement. The legal consequences for violations are fine in the form of money. In this case, Gresik District Court on August 2014 decided …

Status Quo Kewenangan Perusahaan Asuransi Dalam Menerbitkan Produk Penjaminan Pasca Berlaku Efektifnya Undang-Undang No. 1 Tahun 2016 Tentang Penjaminan, Kalih Krisnareindra

"Dharmasisya” Jurnal Program Magister Hukum FHUI

Risk is something that is always exist in various type of business. Risk management commonly used the assistance of insurance companies to manage its risk by risk transfer. The current prevailing law allows the insurance industry to develop its products wider than the explicitly defined business lines in the regulation. Historically, the guarantee/surety business has been marketed jointly between insurance companies and guarantee/surety companies. This can be traced through laws and regulations that provide the authority to both type of companies to issue guarantee/surety products. But with the enactment of Law No. 1 of 2016 concerning Guarantees, there is an …

Kegiatan Monopoli Pada Bumn Kepelabuhanan: Studi Terhadap Pelaksanaan Perjanjian Tertutup (Tying Agreement) Oleh Pt Pelabuhan Indonesia Ii (Persero) Pada Area Konsesi Pelabuhan Dalam Perspektif Hukum Persaingan Usaha, Kahfiarsyad Julyan Elevenday

"Dharmasisya” Jurnal Program Magister Hukum FHUI

This study aims to find out about how the monopoly activities including how the implementation of a tying agreement conducted by PT Pelabuhan Indonesia II (Persero) as a SOE in the perspective of Competition Law. This study is conducted by analyzing the consideration of judges as stated in the Supreme Court of Republic Indonesia Decision No. 302 K/Pdt. Sus-KPPU/2014 and North Jakarta District Court Decision No. 1/Pdt/KPPU/2015/PN Jkt.Utr. The results of this study indicate that the monopoly activities conducted by PT Pelabuhan Indonesia II (Persero) in its concession area are a monopoly by law as stated in Article 50 a …

Perlindungan Konsumen Startup Digital Yang Bergerak Di Bidang Layanan Urun Dana Melalui Penawaran Saham Berbasis Teknologi Informasi Dalam Sistem Hukum Indonesia, Juliyani Purnama Ramli

"Dharmasisya” Jurnal Program Magister Hukum FHUI

The existence of equity crowdfunding is one of the solutions for micro, small, and medium enterprises financing. The government already regulates equity crowdfunding matters by Financial Service Authority Number 37/POJK.04/2018 concerning equity crowdfunding. The problem is that the state has not fully protected consumers of equity crowdfunding. Its because the definition of equity crowdfunding consumer does not fulfill the consumer elements in Consumer Protection Regulation. The Financial Service Authority has not explicitly regulated consumer protection yet, even though equity crowdfunding has a great opportunity to develop and be used by the community directly.

Keywords: equity crowdfunding, financial service authority, and …

Pengujian Tindakan Penyalahgunaan Wewenang Pejabat Di Pengadilan Tata Usaha Negara, Bob Humisar Simbolon

"Dharmasisya” Jurnal Program Magister Hukum FHUI

The examination of the Abuse of Authority in the State Administrative Court is an administrative act or action that must be based on the existing laws and regulations. However, along with the growing understanding of the state of material law, the understanding that government based on laws has shifted to an understanding of state government based on law. The purpose of this paper is to see the extent of the authority of the State Administrative Court in examining territorial boundaries and the authorized procedures at the State Administrative Court. The research method is in the form of normative juridical research …

Penanganan Situs Internet Bermuatan Negatif, Muhammad Farhansyah Hamid

"Dharmasisya” Jurnal Program Magister Hukum FHUI

This paper discusses the concept of an internet site that is defined to be negative and how the Indonesian law regulates it, and about the mechanism of negative site handling based on peraturan menteri komunikasi dan informasi nomor 19 tahun 2014. Furthermore, it will be discussed about the human rights to have access to the information and how negative content handling is related to it. This legal research uses a normative juridical approach with secondary data from national, regulations, books, and interviews with sources. The result of this research is that content handling is so related to limitation of human …

Konversi Akad Ijarah Al-Muntahiya Bi Al-Tamlik (Imbt) Menjadi Akad Mudharabah, Ana Eka Fitriani

"Dharmasisya” Jurnal Program Magister Hukum FHUI

POJK No.29/POJK.03/2019 about Earning Asset Quality and Establishment of Allowance for Earning Asset Losses for Islamic Rural Banks states that one of the conversions that can be done is the conversion of Ijarah Al-Muntahiya Bi Al-Tamlik (IMBT) contract to Mudharabah contract. When IMBT is converted into Mudharabah contract, at the end of IMBT contract the debtor can’t have the object. Because, the object turned into capital that was given by Shahib al-Mal to Mudharib. There is an adversity that is more detrimental to one party and beneficial to the other. If there is a conflict between adversity and benefit, then …

Implementasi Peraturan Daerah Dalam Otonomi Daerah Menjadi Salah Satu Parameter Good Governance, Ananda Rayhana Putri

"Dharmasisya” Jurnal Program Magister Hukum FHUI

Regional Regulation as one of the regional legal products is something inherent with the Regional Autonomy system. This is a consequence of the regional autonomy system itself which is based on independence and is not a form of freedom of an independent government unit. Independence itself means that the Region has the right to regulate and manage the domestic affairs of its own government. The authority to regulate here means that the region has the right to make legal decisions in the form of laws and regulations. In forming a region it is not easy because it requires sufficient knowledge …