Everyone is familiar with the “Rock, Paper, Scissors” method of resolving disputes where scissors cut paper, paper covers rock, and rock breaks scissors.  In Futuri Real Estate, Inc. v. Atlantic Trustee Services, the Virginia Supreme Court had to decide whether a Subordination Agreement in which the first lienholder agreed to subordinate its lien to the…

Many states, including Maryland and Pennsylvania, recognize the common law form of ownership of property as “tenants by the entireties” for both real and personal property, including bank accounts.  Under that form of ownership, a husband and wife are a “marital unit” that is a different legal entity than the husband or the wife individually. …

“Transfers,” and when they occur, are important under the Bankruptcy Code for a number of reasons.  Trustees may recover as a “preference” any “transfer…to of for the benefit of a creditor…for or on account of an antecedent debt…made within 90 days before the date of the filing of the petition…that enables such creditor to receive…

The bankruptcy system is facing a potential upheaval from an unlikely front: a patent dispute. The U.S. Supreme Court has heard oral arguments and is now considering the case Oil States Energy Services, LLC v. Greene’s Energy Group, LLC, and its separation of powers issues could have a drastic effect on the operation of American…

In April 2017, the U.S. Supreme Court gave Congress a number of proposed amendments to the Federal Rules of Bankruptcy Procedure (FRBP). Congress approved those amendments, and they became effective on December 1, 2017. Some of the advantages in the new amendments go to consumers who declare bankruptcy in Federal Court. The lending and banking…

On February 27, 2018, the United States Supreme Court issued its opinion in Merit Management Group, LP v. FTI Consulting, Inc. to resolve conflicting Circuit Court interpretations of Bankruptcy Code Section 546(e).  Although the Merit opinion is unanimous and appears straightforward on first reading, fertile grounds for future litigation remain. Section 546(e) is commonly referred…

Many parties, particularly large companies operating in multiple states, include provisions in their standard contract forms specifying that the law of a particular state governs the transaction.  The choice of applicable law is generally law with which the company is familiar, such as the law of the state where its headquarters is located, or law…

A debtor’s bankruptcy is a threat to the lender’s interest. In some cases, the creditor’s role in a bankruptcy proceeding is simply a matter of procedure. File forms, get in line, and hope for the best. In other cases, the legal questions are far more complex.  In such cases, consultation with a creditors’ rights attorney may be…

According to an October 16, 2017 article in the New York Law Journal, the judges of the United States Bankruptcy Court for the Southern District of New York “are presiding over a record high number of large mega cases.”  An October 20, 2017 decision of the United States Court of Appeals for the Second Circuit,…

Public perception does not always match reality and in recent years, the banking industry has taken some hits. Creditors have the right to protect their interests but it is important to work with a legal professional who gets the business and has practical foresight. Lenders are necessary market participants that take on risk. This risk…