On October 19, 2017, the Eleventh Circuit Court of Appeals stated “a bankruptcy court can enjoin any civil action if the outcome could alter the debtor’s rights, liabilities, options, or freedom of action or in any way impacts upon the handling and administration of the bankrupt estate.” In re: Fundamental Long Term Care, No. 16-16462, 2017 WL 46826791 at
This third installment of our series delves into the following issues: (1) Are life settlements viewed as securities under applicable state law? (2) How can the debtor-in-possession, i.e. the debtor in a Chapter 11 bankruptcy case (“DIP”) or the trustee avoid the life settlements going in to grace and/or lapsing due to insufficient funds to make
Berger Singerman attorney Lew Killian discusses his role as a mediator and the mediation process. Click here to watch. For more information on this topic, please contact Lewis Killian on the firm’s Business Reorganization Team.
When the real estate market and financial markets tumbled during 2007-2008, the fallout was felt by financial institutions from large multi-billion dollar banks to small Community Banks. As these banks struggled to stay alive, a trend emerged for bank holding companies to market and sell a distressed bank through Section 363 of the Bankruptcy Code.
This second installment of our series, “The Life Settlement Industry – Bankruptcy Issues”, will address two related issues: (1) What type of interest (if any) does an investor-creditor have in a “life settlement” (i.e., a life insurance policy sold by the original owner to a third party for a value in excess of the policy’s cash surrender value, but less
When businesses experience financial difficulties, it is very common for them to “rob Peter to pay Paul.” Occasionally, this takes the form of using taxes that have been withheld from employees’ paychecks to pay expenses instead of remitting those funds to the IRS. Of course, it is well known that even though such obligations are corporate, individuals
A “life settlement” is the sale of a life insurance policy to a third party for a value in excess of the policy's cash surrender value, but less than its death benefit. The life settlement industry focuses on the purchase and sale of life settlements or fractional interests in life settlements to investors. These investors may be anyone from
Ruden McClosky, P.A. (“Ruden”), a formerly large and prestigious law firm that was founded in 1959 and at its peak had more than 200 attorneys commenced a bankruptcy case by filing a petition for Chapter 11 relief (“Petition”) in the United States Bankruptcy Court for the Southern District of Florida on November 1, 2011. The firm was a victim of the
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