U.S. Supreme Court Bankruptcy Roundup

On June 6, 2022, the U.S. Supreme Court issued a much-awaited decision, Siegel v. Fitzgerald, No. 21-441, __. U.S. __, 2022 WL 1914098 (U.S. June 6, 2022), holding unconstitutional certain aspects of Congress’s 2017 amendment to 28 U.S.C. § 1930(a)(6) (the “2017 Amendment”). The 2017 Amendment dramatically increased the quarterly fees charged by the United States Trustee (“UST”) in chapter 11 cases.

The roots of this dispute go back to the creation of the UST program […]

By | July 12th, 2022 ||

Passage Of Bankruptcy Threshold Adjustment And Technical Corrections Act

Congress has made some small but important changes to the Bankruptcy Code through its enactment of the Bankruptcy Threshold Adjustment and Technical Corrections Act (the “Act”) on June 21, 2022. The most important of these are the increases in the debt limits for debtors under chapter 13 and under the Small Business Reorganization Act (the “SBRA”)—increases that will continue for at least two years.

First, the Act reinstates the debt limit for debtors to qualify […]

By | July 3rd, 2022 ||

Third-Party Releases In Mahwah Bergen’s Chapter 11 Plan Held To Be Unenforceable

In a recent decision, Judge David Novak of the US District Court for the Eastern District of Virginia vacated the Chapter 11 plan confirmation order entered by the bankruptcy court in the Mahwah Bergen Retail Group (formerly known as Ascena Retail Group) case, holding that the plan’s non-consensual third-party releases were unenforceable.1 The ruling arrived shortly after an opinion issued by the US District Court for the Southern District of New York in the Purdue […]

By | May 27th, 2022 ||