Preventing Manipulation of Subchapter V: Challenging Eligibility for the Election and Projected Disposable Income

A live 90-minute CLE video webinar with interactive 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.

Wednesday, August 24, 2022 (in 8 days)

1:00pm-2:30pm EDT, 10:00am-11:30am PDT

or call 1-800-926-7926

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 after the Bankruptcy Threshold Adjustment and Technical Corrections Act, 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 and private equity funds attempting to use 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 after the Bankruptcy Threshold Adjustment and Technical Corrections Act, 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:

  • Does a U.S. subsidiary of a parent company that is publicly traded on a foreign exchange qualify for Subchapter V?
  • Would foreign-owned U.S. subsidiaries funded by their foreign parent be eligible under Subchapter V?
  • 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

Raviele, Jennifer
Jennifer D. Raviele

Special Counsel
Kelley Drye & Warren

Ms. Raviele focuses her practice on bankruptcy – specifically on representing creditors in Chapter 11 and Chapter...  |  Read More

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You may pre-order a recording to listen at your convenience. Recordings are available 48 hours after the webinar. Strafford will process CLE credit for one person on each recording. All formats include course handouts.

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