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Subchapter V Strategies: Challenging Eligibility and Enforcing Disposable Income Requirements

Recording of a 90-minute CLE video webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Tuesday, September 17, 2024

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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.

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.

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Outline

  1. Overview of options for small business
  2. Challenging eligibility
  3. 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?

Faculty

Gold, Ivan
Ivan M. Gold

Of Counsel
Allen Matkins Leck Gamble Mallory & Natsis

Mr. Gold is of counsel in our San Francisco office. He represents clients in all areas of real estate-related...  |  Read More

Prescott, Adam
Adam R. Prescott

Shareholder
Bernstein Shur Sawyer & Nelson

With experience in a broad range of industries, including healthcare, hospitality, food and beverage, manufacturing,...  |  Read More

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