Category: Bankruptcy

Monday morning, 9 a.m. Your largest commercial borrower just filed Chapter 11 in Tampa’s Middle District of Florida. The automatic stay is already in effect, collection efforts have halted, and the secured collateral you’ve been monitoring is now under federal court protection. For regional banks and credit unions across Tampa Bay, this scenario isn’t hypothetical […]

When a commercial or residential tenant files for bankruptcy, landlords are often caught off guard—suddenly faced with unpaid rent, an automatic stay, and uncertainty about their rights under the lease. From a creditors’ rights perspective, it’s essential for landlords to act quickly and strategically to protect their interests. Here’s what landlords need to know when […]

Credit unions frequently rely on cross-collateralization clauses to secure loan portfolios, strengthen their position, and reduce risk. But when a member files for bankruptcy, these clauses can become both a sword and a shield—and sometimes a source of legal complexity. In this post, we break down what cross-collateralization means in bankruptcy, what risks and protections […]

Chapter 13 Bankruptcy Confirmation Confirmation in a Chapter 13 bankruptcy case is the process by which the bankruptcy court approves a debtor’s proposed repayment plan. Once a Chapter 13 plan is confirmed, it has several important effects: Protection from Creditors: Confirmation of a Chapter 13 plan provides the debtor with protection from creditors. As long […]

How Courts Determine Interest Rates in Bankruptcy Cases An objection to failure to pay the appropriate interest rate in a chapter 13 plan typically arises when a secured creditor’s claim is being paid over time through the plan, but the proposed interest rate (also called the “cramdown rate”) is too low to satisfy the creditor’s […]

Creditors Need to Understand Section 363 Sales When a debtor files for bankruptcy, creditors are immediately concerned with protecting their rights and maximizing recovery. One of the most powerful—and sometimes overlooked—tools in the bankruptcy process is the Section 363 sale. Named for Section 363 of the Bankruptcy Code, this mechanism allows a debtor-in-possession, or trustee, […]

What is a 363 Sale? A 363 sale, also known as a Section 363 sale, is a type of sale that occurs during a bankruptcy proceeding. It refers to a sale of assets of the debtor by either a debtor-in-possession, or trustee, under section 363 of the Bankruptcy Code. In a 363 sale, a debtor […]

When a person files for bankruptcy, their debts are discharged, meaning they are no longer legally obligated to pay them. However, there are certain types of debts that are not eligible for discharge under Section 523. These may include debts incurred through fraud, embezzlement, or willful or malicious injury to another person or property. What […]

A recent Bankruptcy Court decision sanctioned a creditor that filed an inaccurate proof of claim by awarding attorney’s fees to the debtor.  In re Simmons, No. 22-680 (Bankr. D. S.C. Aug. 31, 2022). Bankruptcy Procedure for Proof of Claim Rule 3001(c)(2)(D)(i)-(ii) of the Federal Rules of Bankruptcy Procedure states that if a creditor fails to […]

What Is Mediation in the Context of a Bankruptcy Proceeding? Mediation is the process used in bankruptcy cases to help resolve disputes between parties in a less formal and less adversarial manner, than through traditional litigation. During mediation in bankruptcy, a neutral third-party mediator facilitates communication between the parties involved and helps them reach a […]