In Chapter 7 Bankruptcy Time Limits Conflict with Notice Provisions

When a Debtor files a Chapter 7 bankruptcy petition, creditors and other interested parties must meet certain time limits in order to challenge discharges of certain debts and additional developments in the case. But, in some instances, whether these time limitations should apply, may depend on whether these creditors and interested parties have sufficient notice…

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City of Detroit Reaches Agreement with Certain Group of Insurers for Municipal Bondholders

After resolving many other aspects of Detroit’s chapter 9 bankruptcy case, mediators addressing the disposition of claims from certain debt holders set the path for a trial in which the bankruptcy judge will assess the fairness of the negotiated plan. Last week both assemblies of Michigan’s Legislature approved necessary funding for that plan. Now mediators…

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Bankruptcy Judge Shows Reach of Automatic Stay

One of the prominent features of federal bankruptcy procedure is the automatic stay of all lawsuits or civil actions against the debtor. When a person or company files for bankruptcy protection, whether it be a Chapter 7 liquidation, a Chapter 13 individual bankruptcy or a Chapter 11 corporate reorganization, the bankruptcy court automatically issues the…

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Further Mediation Required in Light Squared’s Chapter 11 Bankruptcy Case

U.S. Bankruptcy Judge Shelley Chapman ordered the parties in the Chapter 11 bankruptcy action concerning LightSquared, Inc. back to mediation after earlier this month rejecting the proposed plan for the company to exit bankruptcy. LightSquared is a wireless-spectrum company controlled primarily by hedge-fund owner, Phillip Falcone.   The roadblock that prompted the Judge’s action results…

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