Recent Developments In Bankruptcy Law Update

1. AUTOMATIC STAY
1.1 Covered Activities
1.2 Effect of Stay
1.3 Remedies
2. AVOIDING POWERS
2.1 Fraudulent Transfers
2.1.a Imposition and payment of a tax penalty is not a fraudulent transfer. While insolvent, the debtor incurred and paid tax penalties before bankruptcy. A transfer of property of the debtor while the debtor was insolvent for less than reasonably equivalent value is avoidable as a constructively fraudulent transfer. By referring to an exchange for value and defining when a transfer is made as […]

By | April 22nd, 2022 ||

Second Circuit Split Resolved: No PPP Loans For Debtors In Bankruptcy

In March, the U.S. Court of Appeals for the Second Circuit joined a growing majority of courts with Springfield Hospital, Inc. v. Administrator for the U.S. SBA, holding that no matter how forgiving its terms, a CARES Act’s Paycheck Protection Program (“PPP”) loan is not protected under section 525(a) of the Bankruptcy Code, which prohibits governmental units from denying, revoking, suspending, or refusing to renew a license, permit, charter, franchise, or other similar grant to a debtor […]

By | April 11th, 2022 ||

Bankruptcy And IRC Section 4980H

The recent bankruptcy case of In re Creative Hairdressers, Inc. et al,  Case Nos. 20-14583 and 20-14584 (jointly administered) (Bankr. D. Md., March 3, 2022) involved the intersection of IRC section 4980H’s employer shared responsibility payment and bankruptcy law.
Bankruptcy and Section 4980H’s Employer Shared Responsibility Payment
This case addresses an interesting intersection of tax and bankruptcy law.  Specifically, it looks at the bankruptcy court’s treatment of claims made by the Internal Revenue Service (IRS) under §4980H of the Internal […]

By | April 1st, 2022 ||