Subchapter V Strategies: Challenging Eligibility and Enforcing Disposable Income Requirements

Course Details
- smart_display Format
On-Demand
- signal_cellular_alt Difficulty Level
Intermediate
- work Practice Area
Bankruptcy
- event Date
Tuesday, September 17, 2024
- schedule Time
1:00 p.m. ET./10:00 a.m. PT
- timer Program Length
90 minutes
-
This 90-minute webinar is eligible in most states for 1.5 CLE credits.
This CLE webinar will address how creditors can prevent the manipulation of Subchapter V by challenging the election eligibility and by paying careful attention to the projected disposable income. The panel will discuss options for small businesses, guide counsel through eligibility requirements under Subchapter V, and review risks related to the projected disposable income standard for confirmation.
Faculty

With experience in a broad range of industries, including healthcare, hospitality, food and beverage, manufacturing, retail, technology, transportation, and banking, Mr. Prescott helps businesses and individuals accomplish their goals by working closely with his clients and their advisors to understand the specifics of each situation and provide creative, cost-effective solutions to complex problems, both inside and outside of the courtroom.

Mr. Gold is of counsel in our San Francisco office. He represents clients in all areas of real estate-related litigation in state and federal courts, as well as contested matters and adversary proceedings in bankruptcy court. Mr. Gold has extensive experience in breach of lease and unlawful detainer litigation and pre-litigation counseling and negotiation involving a wide variety of commercial real estate, including neighborhood and regional shopping centers, office buildings, warehouse and industrial properties, data centers, restaurants, and hotels. Ivan represents shopping center developers and landlords of office and data center properties in major bankruptcy proceedings throughout the United States. He has utilized alternative dispute resolution in a wide variety of disputes, including arbitration, mediation and private judge proceedings.
Description
Most debtors who can do so are electing to proceed under Subchapter V of Chapter 11, although other options remain. Creditors, however, are advised to be wary of large companies attempting to shoehorn themselves into Subchapter V to circumvent Chapter 11 creditor protections.
Subchapter V permits deferred payment of often significant post-petition expenses and obligations over the life of the plan and abolishes the absolute priority rule if the debtor commits all "projected disposable income" to plan payments.
Creditors should be ready to challenge eligibility for election as a Subchapter V debtor, including whether the debts asserted by the debtors are accurate. If a debtor's future disposable income is greater than projected, creditors will not receive any greater distribution.
Listen as this experienced panel of bankruptcy counsel discusses options for small businesses, eligibility under Subchapter V, and the projected disposable income standard.
Outline
- Overview of options for small business
- Challenging eligibility
- Challenging projected disposable income
Benefits
The panel will discuss these and other complex and critical issues:
- What debts are counted in the debt limit?
- What options exist for challenging whether claims are liquidated or contingent?
- How should projected disposable income be calculated?
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