Congeni Law Firm Legal News

The President recently signed the Coronavirus Aid, Relief, and Economic Security Act or “CARES Act” in response to the coronavirus pandemic that is hammering businesses worldwide. The Act includes changes to the Small Business Reorganization Act (SBRA), also known as subchapter V of chapter 11 of the Bankruptcy Code. Specifically, the CARES Act increased the debt ceiling for eligibility...

The United States Trustee for Region 5 has qualified Leo Congeni for inclusion in the pool of trustees who may be appointed on a case-by-case basis to administer cases filed under the Small Business Reorganization Act of 2019 (Subchapter V), which amended chapter 11 of title 11 of the United States Code. Under Subchapter V, which took effect on February 19, 2020, trustees will, among other...

The Small Business Reorganization Act of 2019 (H.R. 3311) became effective on February 19, 2020. On February 20, 2020, a client of The Congeni Law Firm filed the first Louisiana SBRA case in the United States Bankruptcy Court for the Eastern District of Louisiana in New Orleans. The case involves an overleveraged veterinary clinic with a handful of employees. The business has been serving pet...

On August 23, 2019, the President signed the Small Business Reorganization Act of 2019 (H.R. 3311). The law will take effect in February 2020. The Act is intended to ensure “that small businesses will be able to reorganize and rehabilitate their financial affairs effectively under the Bankruptcy Code,” said American Bankruptcy Institute (ABI) Executive Director Samuel J. Gerdano. The ABI...

State law exempts certain assets from seizure by creditors or bankruptcy trustees. The intent is to ensure that borrowers retain basic items necessary to live -- example, furnishings, clothes, tools necessary for work, etc. Some states also use exemptions to encourage entrepreneurs to invest and start businesses in their state. For example, the states of Florida and Texas exempt the full value of...

Bankruptcy clients are occasionally surprised upon being advised that all assets and recent transfers must be listed as part of their bankruptcy case. Clients sometimes innocently believe that certain assets are inconsequential or that pre-bankruptcy planning, including asset transfers, are not pertinent to their bankruptcy case. When choosing your New Orleans bankruptcy attorney or attorney in...

Single asset real estate (SARE) debtors typically are commercial entities formed to own and operate income producing real estate like apartment buildings, strip malls or office buildings. “Cramdown” describes the tool that enables Chapter 11 debtors to confirm a plan notwithstanding the objections of an entire class of creditors. A perquisite to cramdown is the acceptance of at least one...

Chapter 13 bankruptcy is designed for individuals who’ve defaulted on their home mortgage. It provides a powerful tool for catching-up past-due payments on standard, 30 year mortgages. Homeowners may take 3 - 5 years to repay the past-due installments. Upon completing the case, the homeowner emerges from Chapter 13 current on their mortgage. What if the loan is not a standard 30 year...