1. Issues Arising from Bankruptcy
“We made too many wrong mistakes”
Yogi Berra

2. CAUSES OF BANKRUPTCY You can observe a lot by just watching

3. Economic Events Fraud Bad Business Model Great Recession Oil prices
Bubbles
Tech – Dot Bomb
Multi-family
Fraud
Ponzi scheme – It’s like déjà vu all over again.
Bad Business Model
We made too many wrong mistakes
Slump? I ain’t in no slump… I just ain’t hitting
No one goes there nowadays, it’s too crowded. If the people don’t want to come out to the ballpark, nobody’s going to stop them.

4. Discharge Contracts and Bankruptcy(not enforced

5. VOLUNTARY PETITION CHAPTER 7 CHAPTER 9 CHAPTER 11 CHAPTER 12

6. PARTIES CHAPTER 7 TRUSTEE DEBTOR IN POSSESSION EXAMINER
U.S. TRUSTEE
Receiver

7. Proof of Claim- 11 USC 502 Secured creditor Expert required- value
Unsecured claims

8. Automatic Stay – 11 USC 362
Motion
Expert
Abandonment

9. Sales – 11 USC 363 Interest Make Whole Provisions
Free and clear of liens

10. Meetings of Creditors –Rule 341

11. Discovery – Rule 2004

12. Plan of Reorganization
Chapter 11
Chapter 13

13. Fraudulent Conveyance – 11 USC 548
Actual Fraud
Transfers made with actual intent to hinder, delay or defraud

14. Constructive Fraud
The debtor received less than reasonably equivalent value in exchange for the transfer.

15. The transfer was made while the debtor was
insolvent or was rendered insolvent thereby; or
Any property remaining with the debtor was an
unreasonably small capital; or
The debtor incurred to incur or believed it would
incur debts that would be beyond the debtor’s ability to pay as they matured.

16. Preference- 11 USC 547
A trustee may recover a debtor’s transfer of property:
To a creditor of the debtor;
For an antecedent debt of the debtor;
Made while the debtor was insolvent;
The transfer was made to the defendant within 90 days of the debtor filing bankruptcy, or within 1 year if the defendant was an insider of the debtor;
The defendant received more than they would have received in a Chapter 7 case if the transfer had not been made and they received what they would have in a distribution;

17. Defenses to Preferences
Ordinary course
Ordinary course of business between the parties or
Ordinary business terms within the industry
New Value
Contemporaneous Exchange
Improvement of Position

18. Adam Nach Lane & Nach, PC Adam. nach@lane-nach
Adam Nach Lane & Nach, PC Jeffrey Sumpter CBIZ Valuation Group, LLC