Bankruptcy Practice in Virginia

Bankruptcy Practice in Virginia
Publication Date: 2017 Edition at the Printer
Electronic Forms: 13
Available Formats: Print (916 pages, softcover, 1 volume)
  Electronic (searchable PDF via flash drive, CD, or immediate download)
  Both Print and Electronic formats
Product #: 898

Information

Content Highlights:

  • Overview of Bankruptcy Law
  • Commencement of a Case
  • Automatic Stay
  • Property of the Bankruptcy Estate
  • Use and Sale of Property
  • Discharge and Dischargeability
  • Avoidance of Pre- and Postpetition Transfers
  • Debtor Exemptions and Avoidance Actions
  • Chapter 7: Liquidation Plan
  • Chapter 13: Wage Earner Plan
  • Chapter 11: Reorganization
  • Jurisdictional Issues
  • Compensation for Attorneys and Other Professionals
  • Tax and Accounting Issues
  • Claims Against the Bankruptcy Estate
  • Bankruptcy Ethics Violations, Fraud, and Crimes

2017 Edition At The Printer

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Bankruptcy practice is technical and specialized, with procedural requirements and substantive hurdles not found in other areas of the law. This book, the product of years of effort and experience by leading Virginia bankruptcy practitioners and judges, provides guidance, research, sample pleadings, and practice tools that will be a valuable resource to attorneys counseling clients through the bankruptcy process. It helps answer questions such as how to best help your client save a business through a reorganization; what happens when you are pursuing an action on behalf of a creditor and the debtor files for bankruptcy protection; how to get relief from the automatic stay; and how to engage in pre-bankruptcy planning without getting your client (and yourself) into trouble with criminal statutes pertaining to the concealment of assets.

Since this handbook was last published, the courts have issued many opinions interpreting and working through the changes made by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). Lawyers must stay abreast of the changes to the local rules of court and standing orders that have been issued in both the Eastern and Western District of Virginia as well as the changes to relevant state law.


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Table of Contents

CHAPTER LIST

1. Overview Of Bankruptcy Law

2. Commencement Of A Case

3. Automatic Stay

4. Property Of The Bankruptcy Estate

5. Use And Sale Of Property

6. Discharge And Dischargeability

7. Avoidance of Pre- And Postpetition Transfers

8. Debtor Exemptions And Avoidance Actions

9. Chapter 7: Liquidation Plan

10. Chapter 13: Wage Earner Plan

11. Chapter 11: Reorganization

12. Jurisdictional Issues

13. Compensation For Attorneys And Other Professionals

14. Tax And Accounting Issues

15. Claims Against The Bankruptcy Estate

16. Bankruptcy Ethics Violations, Fraud, And Crime

CHAPTER 1:  OVERVIEW OF BANKRUPTCY LAW

1.1    INTRODUCTION

1.2    HISTORY OF BANKRUPTCY
            1.201    Colonial United States
            1.202    The Bankruptcy Act of 1898
            1.203    The Chandler Act
            1.204    The Bankruptcy Reform Act of 1978
            1.205    The Bankruptcy Judges, United States Trustees, and Family Farmer Bankruptcy Act of 1986
            1.206    The Bankruptcy Abuse Prevention and Consumer Protection Act
        
1.3    STRUCTURE OF THE CODE AND BANKRUPTCY PARTICIPANTS
            1.301    Organization of Title 11
            1.302    The Trustee
            1.303    The United States Trustee
            1.304    The Judge
            1.305    The Debtor
            1.306    The Creditor
    
1.4    TYPES OF RELIEF
            1.401    Chapter 7
            1.402    Chapter 11
            1.403    Chapter 12
            1.404    Chapter 13
            1.405    Chapter 15

1.5    BANKRUPTCY ABUSE PREVENTION AND CONSUMER PROTECTION ACT OF 2005

1.6    GLOSSARY OF FREQUENTLY USED TERMS AND SUMMARIES OF RELATED CASE LAW
            1.601    Adequate Protection
            1.602    Applicable Commitment Period
            1.603    Automatic Stay
            1.604    Claim
            1.605    Confirmation
            1.606    Conversion
            1.607    Core Proceeding
            1.608    Cramdown
            1.609    Cure and Maintain
            1.610    Current Monthly Income
            1.611    Discharge
            1.612    Disposable Income
            1.613    Domestic Support Obligation
            1.614    Executory Contracts
            1.615    Exemptions
            1.616    Fee Application
            1.617    Lien Avoidance
            1.618    Means Test
            1.619    Plan Modification
            1.620    Reaffirmation
            1.621    Serial Filers
            1.622    “Till Rate”
            1.623    Trustee (and Debtor-in-Possession)
    
CHAPTER 2:  COMMENCEMENT OF A CASE

2.1    ADMISSION TO PRACTICE IN BANKRUPTCY COURT
            2.101    In General
            2.102    Requirements for Admission
            2.103    Practice by Attorneys Not Licensed in Virginia
            2.104    Application and Certification Forms
            2.105    Non-Attorney Representatives
            2.106    Attorneys’ Ethical Obligations
    
2.2    INITIAL PLEADINGS
            2.201    Petition
            2.202    Matrix of Creditors
            2.203    Creditor’s Address
            2.204    Filing Fees
            2.205    Amendment of Pleadings
            2.206    Electronic Case Filing

2.3    SCHEDULES AND STATEMENTS
            2.301    In General
            2.302    Schedules A-J
            2.303    Statements
            2.304    Redaction of Personal Information
    
2.4    OTHER NECESSARY PLEADINGS AND PAPERS
            2.401    Homestead Deed
            2.402    Corporate Resolution
            2.403    Additional Papers for Chapter 11 Cases
            2.404    Chapter 12 Repayment Plan
            2.405    Chapter 13 Repayment Plan
            2.406    Most Recent Tax Return
            2.407    Interest in Education IRA
            2.408    Proof of Identity
            2.409    Statement Disclosing Postpetition Change in Income

2.5    SUBSTANTIVE CONSOLIDATION AND JOINT ADMINISTRATION
            2.501    In General
            2.502    Substantive Consolidation
            2.503    Joint Administration
    
2.6    ELIGIBILITY OF DEBTOR
            2.601    In General
            2.602    Briefing with Budget and Credit Counseling Entity
            2.603    Section 109(g) Limitations on Eligibility
            2.604    Chapter 7
            2.605    Chapter 9
            2.606    Chapter 11
            2.607    Chapter 12
            2.608    Chapter 13

2.7    TYPES OF PROCEEDINGS
            2.701    “Adversary Proceedings” and “Contested Matters” Distinguished
            2.702    Caption of the Pleadings
    
2.8    ADVERSARY PROCEEDINGS
            2.801    Specific Actions Deemed Adversary Proceedings
            2.802    Applicable Bankruptcy Rules: Part VII
            2.803    Initial Pleadings
            2.804    Service of Summons and Complaint
            2.805    Discovery Conference and Required Disclosures
            2.806    Pretrial Conference
            2.807    Additional Forms Available at Eastern District Website
        
2.9    CONTESTED MATTERS
            2.901    Initiation by Motion
            2.902    Matters Commenced by Objection to Motion
            2.903    Rules Applicable to Contested Matters
            2.904    Form of Pleading
            2.905    Filing Pleadings After Case Closed
            2.906    Service
            2.907    Response to a Motion
            2.908    Local Rules

CHAPTER 3:  AUTOMATIC STAY

3.1    INTRODUCTION
            3.101    The Statute
            3.102    Purpose and Effect of the Automatic Stay
            3.103    Voidness or Voidability of Actions in Violation of the Automatic Stay
            3.104    Pre-Petition Claims
            3.105    Property Interests Subject to Automatic Stay
            3.106    Property Exempt from the Automatic Stay
            3.107    Actions Excluded from the Automatic Stay
            3.108    Co-Debtor Stay
            3.109    Violations of the Automatic Stay
            3.110    Duration of the Stay
    
3.2    RELIEF FROM THE AUTOMATIC STAY
            3.201    The Statute
            3.202    Bankruptcy Rule 4001
            3.203    Stay Pending Appeal
            3.204    Local Rules
            3.205    Grounds for Relief from the Automatic Stay
            3.206    Motion for Relief
            3.207    Form of Motion
            3.208    Ex Parte Relief
            3.209    Notice
            3.210    Notice to Adverse Parties
            3.211    Expert Testimony
            3.212    Non-Expert Opinion
            3.213    Trial
            3.214    Relief
            3.215    “Comfort Orders”
        
CHAPTER 4:  PROPERTY OF THE BANKRUPTCY ESTATE

4.1    INTERESTS IN PROPERTY
            4.101    Concepts
            4.102    Property Owned with Another
            4.103    Interests in Personal Property
            4.104    Property Rights Personal to Debtor

4.2    INTERESTS IN REAL PROPERTY
            4.201    Life Estates
            4.202    Equity or Rights of Redemption
            4.203    Leases and Contracts for Sale
            4.204    Partition
            4.205    Quiet Title

4.3    INTERESTS IN PROPERTY FROM A DIVORCE
            4.301    Debtor’s Entitlement to the Asset
            4.302    Necessity of Court Order or Property Settlement Agreement
            4.303    Future Spousal Support
            4.304    Vested Equitable Rights of Non-Debtor Spouse
    
4.4    INTERESTS ARISING UPON THE DEATH OF A NON-DEBTOR
            4.401    In General
            4.402    Death Occurring Before the Bankruptcy Filing
            4.403    Death Occurring After the Bankruptcy Filing
            4.404    Life Insurance Policies or Death Benefit Plans
            4.405    Non-Retirement Spendthrift Trusts
    
4.5    PROPERTY INTERESTS PRESERVED FOR THE BENEFIT OF THE ESTATE
            4.501    In General
            4.502    Liens Securing Subordinated Claims
            4.503    Miscellaneous Avoidable Transfers
            4.504    Liens Securing Disallowed Claims
            4.505    Effect of Avoidance

4.6    PROPERTY GENERATED POSTPETITION
            4.601    In General
            4.602    Proceeds
            4.603    Rents

4.7    POSTPETITION ACQUISITIONS
            4.701    In General
            4.702    Bankruptcy Trustee Contracts
        
4.8    CONVERSIONS
            4.801    Proceeding Converted from Chapter 11 to Chapter 7
            4.802    Proceeding Converted from Chapter 13 to Chapter 7
        
4.9    INTERESTS IN PROPERTY RECOVERED BY TRUSTEE OR DEBTOR-IN-POSSESSION
            4.901    In General
            4.902    Property Recovered from a Custodian
            4.903    Property Recovered Under the Trustee’s Strong Arm Powers
            4.904    Recovered Preferences
            4.905    Fraudulent and Voluntary Conveyances
            4.906    Postpetition Transfers
            4.907    Setoffs
            4.908    Recoveries by Partnership Trustee
            4.909    Attorney Fees
            4.910    Recovery from a Colluding Buyer
    
4.10    POWERS EXERCISABLE FOR THE BENEFIT OF
A NON-DEBTOR
            4.1001    Powers of Appointment
            4.1002    Corporate Powers
            4.1003    Failed Trusts

4.11    EXPIRED AND EXPIRING LEASES
            4.1101    Commercial Leases
            4.1102    Residential or Personal Property Leases
        
4.12    PROTECTION FOR INSOLVENT DEBTOR’S PROPERTY RIGHTS

CHAPTER 5:  USE AND SALE OF PROPERTY

5.1    THE TRUSTEE IN CASE ADMINISTRATION
            5.101    Role of United States Trustee in Appointment and Supervision of Trustees
            5.102    Election of Trustee at Meeting of Creditors
            5.103    Administration by Debtor-in-Possession
            5.104    Duties of a Trustee
            5.105    Attorney-Client Privilege
            5.106    Conduct of Section 341 Hearing
            5.107    Scrutiny of Debtor’s Financial Affairs
            5.108    Employment of Professionals
            5.109    Distribution of Liquidated Estate

5.2    USE, SALE OR LEASE OF ASSETS OR PROPERTY—SECTION 363
            5.201    Statutory Authority and Trustee’s Powers
            5.202    Use, Sale, or Lease in Ordinary Course of Business
            5.203    Use, Sale, or Lease Outside Ordinary Course of Business
            5.204    Sales Free and Clear of Interests
            5.205    Sale of Interests of Co-owners
            5.206    Credit Bids by Secured Parties
            5.207    Effect of Law or Contract Provisions Prohibiting Use, Sale, or Lease of Property of the Estate
            5.208    Effect of Reversal or Modification upon Appeal
            5.209    Prohibition Against Collusive Bidding
            5.210    Bidding Procedures and Buyer Protection Devices
    
5.3    EXECUTORY CONTRACTS AND UNEXPIRED LEASES—SECTION 365
            5.301    Introduction
            5.302    Definitions
            5.303    Assumption or Rejection
            5.304    Time Periods to Assume or Reject
            5.305    Trustee’s Duties or Obligations Pending Assumption or Rejection
            5.306    Effect of Rejection
            5.307    Assignment
            5.308    Forfeiture Clauses

5.4    CASH COLLATERAL AND POSTPETITION FINANCING
            5.401    Cash Collateral—Section 363
            5.402    Postpetition Financing—Section 364

5.5    CONVERSION AND DISMISSAL OF CASES
            5.501    In General
            5.502    Conversion and Dismissal by Chapter
            5.503    Bad Faith Dismissal—Section 109(g)
            5.504    Effect of Conversion
            5.505    Effect of Dismissal
            5.506    Rules and Procedures for Dismissal or Conversion—Rule 1017
            5.507    Other Grounds for Dismissal or Transfer

CHAPTER 6:  DISCHARGE AND DISCHARGEABILITY

6.1    DISCHARGE IN BANKRUPTCY GENERALLY
            6.101    In General
            6.102    Procedures for Objecting to Discharge
            6.103    Time Limitations
            6.104    Burden of Proof
    
6.2    CHAPTER 7 DISCHARGE
            6.201    In General
            6.202    Grounds for Objecting to Discharge
            6.203    Revocation of Chapter 7 Discharge
        
6.3    CHAPTER 13 DISCHARGE
            6.301    In General
            6.302    Hardship Discharge
            6.303    Limitation on Chapter 13 Discharge
            6.304    Discharge of Postpetition Debts
            6.305    Revocation of Chapter 13 Discharge
        
6.4    CHAPTER 11 DISCHARGE
            6.401    In General
            6.402    Not Granted in Liquidation

6.5    CHAPTER 12 DISCHARGE
            6.501    Denial of Discharge
            6.502    Revocation of Discharge

6.6    EFFECT OF DISCHARGE
            6.601    In General
            6.602    Enjoins Creditor Action
            6.603    Release from Liability
            6.604    Some Liens Still Enforceable
            6.605    Liability of Co-Debtors or Makers

6.7    OBJECTIONS TO DISCHARGEABILITY OF SPECIFIC DEBTS
            6.701    Objection to Discharge Versus Objection to Dischargeability of a Debt
            6.702    Non-Dischargeable Debts
            6.703    Procedures for Objecting to Dischargeability of a Debt
            6.704    Time for Filing
            6.705    Extensions of Time
            6.706    Timing of Other Objections
            6.707    Exceptions to the Dischargeability of Debts

CHAPTER 7:  AVOIDANCE OF PRE- AND POSTPETITION TRANSFERS

7.1    INTRODUCTION

7.2    SECTION 544: STRONG-ARM POWERS
            7.201    Trustee as Judicial Lien Creditor
            7.202    Trustee as Execution Lien Creditor
            7.203    Trustee as Bona Fide Purchaser of Real Property

7.3    SECTION 545: STATUTORY LIENS
            7.301    Insolvency Liens—Section 545(1)
            7.302    Unperfected/Unenforceable Liens—Section 545(2)
            7.303    Landlords’ Liens—Section 545(3) and (4)
            7.304    Avoidance Powers Subject to Sellers’ Reclamation Rights

7.4    SECTION 547: PREFERENCES
            7.401    Elements
            7.402    Transfer of an Interest in Property
            7.403    When Does a Transfer Occur?
            7.404    Antecedent Debt
            7.405    Transfer Made While Debtor Is Insolvent
            7.406    Creditor Receives More Than if the Case Had Been a Chapter 7 Proceeding
            7.407    Transfers to Insiders
            7.408    Burden of Proof
            7.409    Affirmative Defenses
    
7.5    SECTION 548: FRAUDULENT TRANSFERS
            7.501    Actual Intent to Hinder, Delay, or Defraud
            7.502    Transfers for Less Than Reasonably Equivalent Value
            7.503    Reasonably Equivalent Value
            7.504    Insolvency
            7.505    Undercapitalization
            7.506    Inability to Pay Debts
            7.507    Transfer to Insider Under Employment Contract
            7.508    Charitable Transfers
            7.509    Protection of Good Faith Transferees

7.6    SECTION 549: POSTPETITION TRANSFERS
            7.601    Transfers Made in the Ordinary Course of Business
            7.602    Involuntary Transfers
            7.603    Transfers to Good Faith Purchasers
            7.604    Statute of Limitations
            7.605    Jury Trial

7.7    SECTION 550: LIABILITY OF TRANSFEREE OF AVOIDED TRANSFER
            7.701    In General
            7.702    Limitations on Recovery
    
7.8    SECTION 551: AUTOMATIC PRESERVATION OF AVOIDED TRANSFER

7.9    LIMITATIONS ON AVOIDANCE POWERS
            7.901    Seller’s Right of Reclamation
            7.902    Certain Transfers Not Avoidable

CHAPTER 8:  DEBTOR EXEMPTIONS AND AVOIDANCE ACTIONS

8.1    EXEMPTION SYSTEM

8.2    METHOD OF CLAIMING EXEMPTIONS
            8.201    Schedule C of the Bankruptcy Schedules
            8.202    State Law Perfection

8.3    AVAILABLE EXEMPTIONS
            8.301    Homestead Exemption
            8.302    Poor Debtor’s Exemption
            8.303    Other Exemptions

8.4    PROPERTY HELD AS TENANTS BY THE ENTIRETY
            8.401    In General
            8.402    Grant Must Be Specific
            8.403    Real and Personal Property Coverage
            8.404    Impact on Joint Bankruptcy Cases
            8.405    Entireties Property Is Not Immune from Tax Liens

8.5    EXEMPTION PLANNING AND DEBTOR AVOIDANCE ACTIONS
            8.501    In General
            8.502    Trustee’s Ability to Retain or Offset Exempt Property

8.6    OBJECTIONS TO EXEMPTIONS
            8.601    Deadlines for Objections
            8.602    Deadlines for Objections to Amended Exemptions
            8.603    Inappropriate or Frivolous Exemptions
            8.604    Objection Period in Converted Cases
            8.605    Basis for Objections
            8.606    Basis for Attorney Fee Award for Litigation of Allowed Exemption
    
APPENDIX 8-1:  HOMESTEAD DEED FOR REAL PROPERTY

APPENDIX 8-2:  HOMESTEAD DEED FOR PERSONAL PROPERTY

APPENDIX 8-3:  OBJECTION TO EXEMPTIONS

APPENDIX 8-4:  COMMONLY USED EXEMPTION STATUTES

CHAPTER 9:  CHAPTER 7: LIQUIDATION PLAN

9.1    INTRODUCTION
            9.101    Source of Law
            9.102    Overview of the Process
            9.103    Candidates for Chapter 7
            9.104    Nature of the Discharge
            9.105    Automatic Dismissal

9.2    PRE-INTERVIEW MAILING
            9.201    Providing Advance Information
            9.202    Alternatives to Bankruptcy
            9.203    Pre-Consultation Questionnaire
            9.204    Obtaining Client Credit Reports
            9.205    Information and Materials
            9.206    Prior Bankruptcies
            9.207    Prior Homestead Deeds
    
9.3    INITIAL MEETING WITH CLIENTS
            9.301    Explaining the Process
            9.302    Relevant Factors
            9.303    Choice of Chapter
            9.304    Full Disclosure
            9.305    Effect on Future Credit
            9.306    Timing the Filing
            9.307    Where to File
            9.308    Client Communication
            9.309    Handling Creditor Contacts
            9.310    Debt Payments
            9.311    Continued Use of Credit Cards
            9.312    Redemption
            9.313    Reaffirmation
            9.314    Engagement Agreement
            9.315    Recovery of Property
            9.316    Protecting Cash Accounts
            9.317    Pension or Retirement Accounts
            9.318    Codebtors or Guarantors
            9.319    Nondischargeable Debts
            9.320    Tax Debts
            9.321    Fraud and Other Problems
            9.322    United States Trustee’s Office
            9.323    Action List
    
9.4    PREPARATION OF SCHEDULES
            9.401    Office Procedures
            9.402    Encouraging Client Compliance
            9.403    Attorney and Client Review

9.5    TITLE SEARCH ON REAL ESTATE
            9.501    Reasons for the Search
            9.502    Timing of the Title Search
            9.503    Malpractice Concerns
        
9.6    VALUATION ISSUES
            9.601    Verification of Payoff and Value
            9.602    Perfection Issues
    
9.7    FILING THE BANKRUPTCY PETITION
            9.701    General Information
            9.702    Schedules of Debts
            9.703    Schedules of Assets
            9.704    Monthly Budget
            9.705    Statement of Financial Affairs
            9.706    Statement of Intention

9.8    AFTER THE PETITION IS FILED
            9.801    Debtor’s Duties
            9.802    Creditors’ Meeting
            9.803    Subsequent Hearings
            9.804    Working with the Trustee
            9.805    Discharge

9.9    POSTPETITION CREDITOR ACTION

9.10    DISCRIMINATORY TREATMENT
            9.1001    In General
            9.1002    By Governmental Units
            9.1003    By Private Employers

9.11    LEGAL AND ETHICAL ISSUES
            9.1101    In General
            9.1102    Protecting Assets

APPENDIX 9-1:  CHECKLIST

APPENDIX 9-2:  INITIAL QUESTIONNAIRE

APPENDIX 9-3:  COVER LETTER ACCOMPANYING BANKRUPTCY SCHEDULES

APPENDIX 9-4:  LETTER TO CLIENT

CHAPTER 10:  CHAPTER 13: WAGE EARNER PLAN

10.1    INTRODUCTION

10.2    NATURE OF A CHAPTER 13 CASE
            10.201    In General
            10.202    Choice of Chapters
    
10.3    INITIATING A CHAPTER 13 CASE
            10.301    Chapter 13 Petition
            10.302    Automatic Dismissal
            10.303    Getting the Documents Together
            10.304    Practice Pointers
    
10.4    FORMULATING AND FILING A CHAPTER 13 PLAN
            10.401    In General
            10.402    Form Chapter 13 Plan for Virginia
            10.403    Drafting the Plan
        
10.5    GETTING TO CONFIRMATION: FROM PETITION TO THE CONFIRMATION HEARING
            10.501    In General
            10.502    Postpetition, Pre-Confirmation Motions and Orders
            10.503    Section 341 Meeting of Creditors
            10.504    From 341 Meeting to the Confirmation Hearing
    
10.6    CONFIRMATION OF THE PLAN
            10.601    The Confirmation Hearing
            10.602    Confirmation Criteria
            10.603    Proving Confirmation over an Objection: Carrying the Burden of Proof
            10.604    The Effect of Plan Confirmation
            10.605    Effect of Plan Confirmation on Property of the Estate
    
10.7    POSTCONFIRMATION PRACTICE: WHAT CAN HAPPEN AFTER THE PLAN IS CONFIRMED
            10.701    In General
            10.702    Debtor Education
            10.703    Claims Review
            10.704    Postconfirmation Plan Modification
            10.705    Postconfirmation Motions
    
10.8    COMPLETION AND DISCHARGE
            10.801    Discharge Requirements
            10.802    Debts that May Be Discharged
            10.803    Hardship Discharge
            10.804    Eligibility for Discharge in Future Case
            10.805    Retention of Records and Reestablishment of Credit
    
APPENDIX 10-1:  CHAPTER 13 CASES IN THE EASTERN AND WESTERN DISTRICTS OF VIRGINIA: ISSUES, “RED FLAGS,” AND DIFFERENCES

APPENDIX 10-2:  STATEMENT OF CURRENT MONTHLY INCOME

CHAPTER 11:  CHAPTER 11: REORGANIZATION

11.1    INTRODUCTION
            11.101    In General
            11.102    Planning Stage
            11.103    Early Days
            11.104    Business Stabilization
            11.105    Plan Process
            11.106    Creditor Perspective

11.2    DEBTOR-IN-POSSESSION

11.3    UNSECURED CREDITORS COMMITTEES

11.4    OPERATING ISSUES

11.5    TRANSACTIONS IN THE ORDINARY COURSE OF BUSINESS

11.6    TRANSACTIONS OUTSIDE THE ORDINARY COURSE OF BUSINESS

11.7    EXAMINER-TRUSTEE

11.8    EXCLUSIVITY
            11.801    Extension of Exclusivity
            11.802    Termination of Exclusivity
    
11.9    ELEMENTS OF A CHAPTER 11 PLAN

11.10    DISCLOSURE STATEMENT

11.11    CONFIRMATION OF THE PLAN

11.12    EFFECT OF CONFIRMATION

11.13    POSTCONFIRMATION ISSUES

CHAPTER 12:  JURISDICTIONAL ISSUES

12.1    BANKRUPTCY JURISDICTION
            12.101    History
            12.102    Background
            12.103    Jurisdiction
            12.104    Referral from the District Court
            12.105    Core Proceedings
            12.106    Withdrawal of Reference
            12.107    Abstention
    
12.2    SOVEREIGN IMMUNITY
            12.201    Statutory Framework
            12.202    Central Virginia Community College v. Katz
            12.203    Lower Court Decisions Interpreting Katz
            12.204    United States Supreme Court Cases Prior to Katz
            12.205    Section 106

12.3    STATE COURT JUDGMENTS
            12.301    The Rooker-Feldman Doctrine
            12.302    Collateral Estoppel and Res Judicata

12.4    JURY TRIALS
            12.401    Right to a Jury Trial
            12.402    Jury Trial Demand
            12.403    28 U.S.C. § 1411
            12.404    Jury Trials in Removed Actions
            12.405    Withdrawal of Reference
            12.406    Waiver of Right to Jury Trial

CHAPTER 13:  COMPENSATION FOR ATTORNEYS AND OTHER PROFESSIONALS

13.1    PAYMENT OF DEBTOR’S COUNSEL IN CHAPTER 7 CASES
            13.101    Source of Payment
            13.102    Timing of Payment
            13.103    Requirement for Disclosure
            13.104    Court Review of Fees Charged by Debtor’s Counsel
            13.105    Practice Pointer

13.2    PAYMENT OF DEBTOR’S COUNSEL IN CHAPTER 13 CASES
            13.201    Source of Payment
            13.202    Standard for Approval
            13.203    Procedure
            13.204    Supplemental Fees
            13.205    Opinions Concerning Chapter 13 Fees
    
13.3    PAYMENT OF ESTATE PROFESSIONALS
            13.301    Standard for Approval
            13.302    Opinions Concerning Fee Awards for Estate Professionals

13.4    APPLICATIONS TO EMPLOY PROFESSIONALS
            13.401    Submission and Service of Application
            13.402    Necessity for Court Approval of Employment
            13.403    Retroactive or “Nunc Pro Tunc” Approval of Employment
            13.404    Approval of Individual Extends to Whole Firm
            13.405    In-House Professionals
            13.406    Who Is a Professional?
            13.407    Qualifications for Employment
            13.408    Procedure
    
13.5    DISINTERESTEDNESS
            13.501    “Disinterested Person” Defined
            13.502    Grounds for Disqualification
    
13.6    FIDUCIARY OBLIGATIONS OF PROFESSIONALS EMPLOYED BY THE ESTATE
            13.601    Background
            13.602    Fiduciary Obligation of Professionals
    
13.7    FEE APPLICATIONS
            13.701    Statutory Framework
            13.702    Bankruptcy Rules and Local Bankruptcy Rules
            13.703    Sample Fee Application
    
13.8    UNITED STATES TRUSTEE GUIDELINES
            13.801    Statutory Authority
            13.802    The Guidelines
            13.803    Guidelines for Larger Chapter 11 Cases
            13.804    Assistance of Other Professionals

13.9    DISGORGEMENT IN THE ADMINISTRATIVELY INSOLVENT CASE
            13.901    Applicable Bankruptcy Code Provisions
            13.902    Whether Disgorgement of Fees Is Appropriate in Administrative Insolvency

13.10    ETHICAL ISSUES FOR ATTORNEYS
            13.1001    Attorney’s Duties to Client
            13.1002    Special Issues in Bankruptcy
            13.1003    Attorneys as Debt Relief Agencies

APPENDIX 13-1:  SAMPLE ENGAGEMENT AGREEMENT

APPENDIX 13-2:  CONSULTATION AGREEMENT WITH NOTIFICATIONS

APPENDIX 13-3:  LOCAL RULE 2016-1 (EASTERN DISTRICT)

APPENDIX 13-4:  STANDING ORDER NO. 17-2 (EASTERN DISTRICT)

APPENDIX 13-5:  STANDING ORDER NO. 15-1 WITH GUIDELINES (WESTERN DISTRICT)

APPENDIX 13-6:  APPLICATION BY COUNSEL FOR A CHAPTER 13 DEBTOR FOR APPROVAL AND PAYMENT OF SUPPLEMENTAL FEES

APPENDIX 13-7:  APPLICATION TO EMPLOY COUNSEL FOR A CHAPTER 11 DEBTOR-IN-POSSESSION

APPENDIX 13-8:  APPLICATION FOR APPROVAL OF COMPENSATION BY DEBTOR’S COUNSEL IN A CHAPTER 13 CASE

APPENDIX 13-9:  FINAL APPLICATION FOR COMPENSATION AND REIMBURSEMENT

APPENDIX 13-10:  GUIDELINES FOR REVIEWING APPLICATIONS FOR COMPENSATION AND REIMBURSEMENT OF EXPENSES

CHAPTER 14:  TAX AND ACCOUNTING ISSUES

14.1    INDIVIDUAL BANKRUPTCIES
            14.101    Bankruptcy Estate a Separate Tax Entity
            14.102    Initial Duties of Trustee
            14.103    Trustee’s Duty to File Tax Returns
            14.104    Trustee’s Liability for Estate Taxes
            14.105    Computation of Tax
            14.106    Administrative Expenses
            14.107    Net Operating Losses
            14.108    Property Taxes
            14.109    Estimated Taxes
            14.110    Abandonment of Property to the Debtor
    
14.2    CORPORATE BANKRUPTCIES
            14.201    Taxable Entity
            14.202    Tax Attributes
            14.203    Filing Requirements
            14.204    Subchapter S Corporations
    
14.3    PARTNERSHIP BANKRUPTCIES
            14.301    Taxable Entity
            14.302    Filing Requirements
            14.303    Partnership Income
    
14.4    CANCELLATION OF DEBT
            14.401    Cancellation of Debt (COD) Income Defined
            14.402    Items That Do Not Constitute COD Income
            14.403    COD Income That Is Excluded from Gross Income
            14.404    Special Rules Relating to Partnerships and S Corporations
            14.405    The Impact of Excluding COD Income
        
14.5    SECTION 505(B) 60-DAY CLEARANCE
            14.501    Application for Determination of Unpaid Liability
            14.502    Failure of IRS to Timely Respond
            14.503    Expedited Audit
            14.504    Audit When Income Insufficient to Require Return
            14.505    Partnerships, Certain S Corporations, and Grantor Trusts Created Pursuant to a Confirmed Chapter 11 Plan
            14.506    Request for Determination of Refund
            14.507    Chapter 13 Cases
    
14.6    FEDERAL FORM W-2 AND RELATED TAX FILINGS
            14.601    Trustee’s Responsibility for Wage-Related Tax Filings
            14.602    Form W-2
    
14.7    FEDERAL FORM 1099
            14.701    Trustee’s Responsibility to File
            14.702    Distributions for Which Filing Is Not Required
            14.703    Obtaining Required Information
    
14.8    OTHER TAXES
            14.801    Sales Tax
            14.802    Transfer Taxes
    
14.9    PENALTIES
            14.901    Failure to File Return
            14.902    Failure to Pay Tax
            14.903    Failure to File Correct Information Returns
            14.904    Failure to Furnish Correct Payee Statements
            14.905    Penalty for Noncompliance with Electronic Filing Requirements
            14.906    Relief from Tax Penalties
    
14.10    FINANCIAL REPORTING
            14.1001    Full Disclosure of Financial Information
            14.1002    Bankruptcy Schedules
            14.1003    Statement of Financial Affairs
            14.1004    Access to the Official Forms
            14.1005    Monthly Operating Reports
            14.1006    Small Business Requirements
            14.1007    Other Reporting Requirements
            14.1008    Financial Reporting When Entities Emerge from Chapter 11
    
APPENDIX 14-1:  DEBTOR’S BALANCE SHEET—FRESH START ACCOUNTING

CHAPTER 15:  CLAIMS AGAINST THE BANKRUPTCY ESTATE

15.1    INTRODUCTION

15.2    PROOFS OF CLAIM
            15.201    In General
            15.202    Definition of Claim
            15.203    Bar Date
            15.204    Secured Claims
            15.205    Mechanics of Filing and Maintaining Claims
            15.206    Common Mistakes
            15.207    Allowance of Claims and Objections
            15.208    Effect of Filing a Proof of Claim

CHAPTER 16:  BANKRUPTCY ETHICS VIOLATIONS, FRAUD, AND CRIME

16.1    INTRODUCTION

16.2    ETHICS VIOLATIONS
            16.201    In General
            16.202    Attorney-Client Privilege and the Duty to Disclose
            16.203    Violations of Federal Rule of Bankruptcy Procedure 9011
            16.204    Duty to Disclose Adverse Authority
            16.205    Ethical Issues with Electronic Case Filing
            16.206    “Ghostwriting” in Bankruptcy Courts
            16.207    Unauthorized Practice of Law in Bankruptcy Court
            16.208    Flat Fees in Chapter 7 Cases
            16.209    Courts’ Role in Enforcing Ethical Standards
    
16.3    BANKRUPTCY CRIMES
            16.301    Criminal Intent
            16.302    Concealment of Assets
            16.303    False Oath
            16.304    False Claims
            16.305    Bribery
            16.306    Fraudulent Transfers
            16.307    Destruction, Concealment, or Withholding of Records
            16.308    Embezzlement
            16.309    Conflicts of Interest
            16.310    Illegal Fee Agreements
            16.311    Improper Petition Preparer Conduct
            16.312    Bankruptcy Fraud
            16.313    Statute of Limitations
            16.314    Required Reference of Criminal Matters
        
16.4    RELATED CRIMES
            16.401    Aiding and Abetting
            16.402    Conspiracy
            16.403    False Statements—Perjury
            16.404    Wire, Mail, and Bank Fraud
            16.405    Obstruction of Justice
            16.406    Money Laundering
            16.407    Racketeer Influenced and Corrupt Organizations (RICO)
    
16.5    PRACTICE CONSIDERATIONS
            16.501    Pre-Bankruptcy Planning
            16.502    Petition, Schedules, and Statements
            16.503    Section 341 Meeting and the Debtor’s Duties
            16.504    Attorney Fees: Agreements and Disclosure
            16.505    Assets Sales
    
16.6    CONCLUSION

TABLE OF AUTHORITIES

INDEX


Authors

Editors

Hon. Kevin R. Huennekens, United States Bankruptcy Court, Eastern District of Virginia / Richmond (Expand/Collapse Bio)

Hon. Kevin R. Huennekens, co-editor of this book, was appointed to fill a new judgeship in the United States Bankruptcy Court for the Eastern District of Virginia in 2006. He formerly was a partner with Kutak Rock LLP and practiced in the firm’s Richmond office. He specialized in creditors’ rights, bankruptcy, and commercial litigation. Mr. Huennekens has represented banks and business clients throughout the country in bankruptcies and workouts. He earned a B.A. from The College of William & Mary in 1975 and a law degree from the Marshall-Wythe School of Law at The College of William & Mary in 1978, where he was a member of the Law Review and the Order of the Coif. He has served as Chairman of the Bankruptcy Section of the Richmond Bar Association and has taught the bankruptcy course as an adjunct professor of Law at Marshall-Wythe School of Law at The College of William & Mary. Mr. Huennekens is listed in the 1995 through 2004 editions of Best Lawyers in America and is a Fellow of the American College of Bankruptcy. He has authored law review articles and speaks regularly at Virginia CLE’s Annual Mid-Atlantic Institute on Bankruptcy and Reorganization Practice. Mr. Huennekens successfully argued the case of Patterson v. Shumate before the United States Supreme Court.

H. David Cox,Cox Law Group PLLC/ Lynchburg (Expand/Collapse Bio)

H. David Cox, co-editor of this book, practices bankruptcy law throughout the Western District of Virginia, with offices in Lynchburg, Danville, Staunton, Harrisonburg and Winchester. His practice and the practices of the other attorneys in his firm focus exclusively on the representation of debtors in bankruptcy and related proceedings. Before entering private practice, Mr. Cox served as a judicial law clerk for the late Hon. William E. Anderson, Bankruptcy Judge for the Western District of Virginia. Mr. Cox is a past member of the Virginia State Bar’s Board of Governors for the Bankruptcy Section and is a Council Member of the Virginia Bar Association’s Bankruptcy Section. He has spoken at numerous CLE programs related to bankruptcy across the country. Mr. Cox is a permanent member of the Fourth Circuit Judicial Conference and a Fellow of the American College of Bankruptcy.

Authors

Kelly M. Barnhart, Roussos, Glanzer & Barnhart, PLC / Norfolk (Expand/Collapse Bio)

Kelly M. Barnhart, co-author of Chapter 7 of this book, is a partner with Roussos, Glanzer & Barnhart, PLC. Her practice focuses on bankruptcy, corporate reorganization, corporate finance and farm insolvencies. She represents debtors, creditors, and trustees, including one of the two standing Chapter 13 trustees for the Norfolk and Newport News Divisions for the Eastern District of Virginia.

Ms. Barnhart graduated from Randolph-Macon Woman’s College with a Bachelor of Arts degree in history and political science. In 2002, she received her Juris Doctor degree from the University of Mississippi School of Law, but spent her third year of law school as a visiting student at the University of Notre Dame School of Law. Ms. Barnhart was admitted to the Virginia State Bar in 2004. She is a member of the Virginia Bar Association, the American Bar Association, and the Tidewater Bankruptcy Bar Association, for which she is one of the past presidents. In addition, she is a past member of the Bankruptcy Bar Liaison Committee for the Norfolk and Newport News Divisions of the Eastern District of Virginia. Ms. Barnhart is admitted to practice in the United States Bankruptcy Courts for the Eastern and Western Districts of Virginia, the United States District Courts for the Eastern and Western Districts of Virginia, and in all courts in the Commonwealth of Virginia.

Paula S. Beran, Tavenner & Beran PLC / Richmond (Expand/Collapse Bio)

Paula S. Beran, co-author of Chapter 8 of this book, is a founding member of Tavenner & Beran, PLC. Her practice has focused on bankruptcy and insolvency matters throughout her career. She has extensive experience in this area, including representing Chapter 11 debtors, official committees of unsecured creditors, stalking horse purchasers, and Chapter 7 and liquidation trustees. She has also represented entities in out-of-court reorganizations and liquidations and served as a corporate receiver in a matter pending in a Virginia circuit court. Prior to entering private practice, Ms. Beran served as bankruptcy law clerk to the Honorable Douglas O. Tice Jr. in the U.S. Bankruptcy Court for the Eastern District of Virginia. She also served as law clerk to U.S. Court of Appeals, Fourth Circuit, Office of Staff Counsel from 1992 to 1994. She currently serves on the Bar Council of the Virginia State Bar. An AV Peer Review Rated attorney by Martindale-Hubbell, Ms. Beran was selected as one of the Top 25 Female Attorneys by Virginia Super Lawyers. She has been recognized in the bankruptcy/creditors’ rights field in numerous editions of Best Lawyers in America, Virginia Super Lawyers, and Virginia Business magazine. She earned her J.D. and M.B.A., cum laude, from Wake Forest University and her B.A, cum laude, from Randolph Macon College.

Herbert L. Beskin, Chapter 13 Trustee / Charlottesville (Expand/Collapse Bio)

Herbert L. Beskin, co-author of Chapter 10, practiced consumer bankruptcy law for 25 years in Charlottesville before being appointed a Chapter 13 Bankruptcy Trustee for the Western District of Virginia in 2003. He has been a Virginia CLE lecturer since 1993, written articles for The Virginia Lawyer and the National Association of Chapter 13 Trustees website, and taught law related courses at both the University of Virginia and Piedmont Virginia Community College. From 1991 to 1997 he served on the Board of Governors of the Bankruptcy Law Section of the Virginia State Bar. He has co-authored two chapters of the Virginia CLE publication Bankruptcy Practice in Virginia: Chapter 7 practice in the first edition with Douglas Little, and Chapter 13 practice in the second and third editions with Judge Rebecca Connelly.

Hon. Paul M. Black, United States Bankruptcy Court, Western District of Virginia / Roanoke (Expand/Collapse Bio)

Hon. Paul M. Black, co-author of Chapter 5 of this book, was appointed as United States Bankruptcy Judge for the Western District of Virginia in 2014. A native of Roanoke, Virginia, Judge Black received his undergraduate degree from Washington and Lee University in 1982, studied at Cambridge University in England, and received his law degree from the University of Richmond in 1985. He then served as law clerk to the Honorable Blackwell N. Shelley, United States Bankruptcy Judge for the Eastern District of Virginia. After practicing law in Richmond for several years, Judge Black returned to Roanoke where he was a member of the regional firm of Spilman Thomas & Battle, PLLC. At Spilman, he was co-chair of the Bankruptcy and Creditor’s Rights practice group, and his practice focused on commercial litigation, bankruptcy, and banking and finance law. In private practice, he was named to Best Lawyers in multiple areas related to finance and insolvency, to Virginia’s Legal Elite by Virginia Business magazine in both Civil Litigation and Bankruptcy Law, and as a Virginia Super Lawyer in the field of Bankruptcy Law.

For many years, Judge Black was an active participant in the Boyd-Graves Conference of the Virginia Bar Association, which studies and makes recommendations to the Virginia legislature on improvements to civil practice in Virginia. He was past chair of the Litigation Section of the Virginia State Bar and also chair of the Bankruptcy Section of the Virginia Bar Association. He served as a member of the Virginia State Bar Disciplinary Board from 2007-2013. Judge Black is a frequent speaker at Virginia CLE seminars.

William E. Callahan, Jr., LeClair Ryan, P.C. / Roanoke (Expand/Collapse Bio)

William E. Callahan, Jr., co-author of Chapter 16 of this book, is a member of LeClair Ryan, a 300-plus attorney, full-service law firm. Mr. Callahan’s practice focuses primarily on business bankruptcy and creditors’ rights litigation. Mr. Callahan earned a B.A. with honors from the University of Virginia and a J.D., magna cum laude and Order of the Coif, from the Washington & Lee University School of Law. He is a member of the American Bar Association, the American Bankruptcy Institute, the Federal Bar Association, the Virginia State Bar, and the Roanoke Bar Association. Mr. Callahan has been selected as one of The Best Lawyers in America and is among Virginia’s Legal Elite.

William H. Casterline, Jr., Blankingship & Keith, P.C. / Fairfax (Expand/Collapse Bio)

William H. Casterline, Jr., co-author of Chapters 3 and 15 of this book, is a principal with Blankingship & Keith, P.C. His practice focuses on commercial real estate and creditors’ rights. He has handled thousands of residential foreclosures and related bankruptcies and over 500 commercial foreclosures. Mr. Casterline is the editor of Virginia Foreclosure Practice, and he frequently lectures on foreclosures and creditors’ rights in bankruptcies. His creditors’ rights practice includes receiverships, unlawful detainers, suits to enforce judgments, and deficiency lawsuits. He represents only creditors in bankruptcy cases, including relief from stay motions, objections to plans, claims disputes and preference defenses. He also represents commercial landlords in tenant bankruptcies. He has been retained in dozens of cases as an expert witness on foreclosures and trustee duties. Mr. Casterline received his B.A. from the University of Richmond in 1973, and his J.D. from the Marshall-Wythe School of Law in 1976, where he served on the William & Mary Law Review. Following law school, he served four years as a Captain in the United States Army Judge Advocate General Corps. He is a fellow in both the American College of Real Estate Lawyers and the American College of Mortgage Lawyers.

Michael A. Condyles, Kutak Rock LLP / Richmond (Expand/Collapse Bio)

Michael A. Condyles, author of Chapter 6 of this book, is the managing partner of Kutak Rock LLP’s Richmond, Virginia office, represents creditors, debtors, creditors’ committees and trustees in all aspects of bankruptcy cases. His practice includes out-of-court workouts and debt recovery litigation on behalf of creditors and debtors. Mr. Condyles possesses a broad range of experience in analyzing, structuring and negotiating a variety of distressed commercial transactions in connection with in and out-of-court restructur¬ings. Recent engagements include the representation of Penn Virginia Corporation and its eight affiliates, one of the nation’s leading oil and gas companies engaged in the acquisition, development and production of oil and natural gas reserves, as well as Patriot Coal Corporation and 47 of its affiliates, which was the second largest producer and miner of coal east of the Mississippi, in their Chapter 11 proceedings. Mr. Condyles also represented Movie Gallery, Inc. and its subsidiaries, formerly the second largest North American home entertainment specialty retailer, in their Chapter 11 cases.

Mr. Condyles is a past Chair and a former member of the Board of Governors and Executive Committee of the Bankruptcy Section of the Virginia State Bar; is listed in The Best Lawyers in America; has been recognized by Best Lawyers in America as Lawyer of the Year; and has achieved Martindale-Hubbell’s highest rating for legal ability and ethical standards. Mr. Condyles also has been appointed by the U.S. District Court, Eastern District of Virginia as a Special Master. He received his law degree from The T.C. Williams School of Law at the University of Richmond, where he was a Member of the University of Richmond Law Review, and his B.S. in Political Science from James Madison University. After law school, he clerked for the Honorable Blackwell N. Shelley, U.S. Bankruptcy Judge for the Eastern District of Virginia.

Hon. Rebecca B. Connelly, United States Bankruptcy Court, Western District of Virginia / Harrisonburg (Expand/Collapse Bio)

Hon. Rebecca B. Connelly, co-author of Chapters 2 and 10 of this book, is the Chief United States Bankruptcy Judge for the Western District of Virginia. In July 2012, she was appointed to replace the Honorable Ross W. Krumm who retired from service as a Bankruptcy Judge on August 1, 2012. She is a former Standing Chapter 13 Trustee and Chapter 12 Trustee for the Western District of Virginia. She has been a frequent speaker and author for Virginia Continuing Legal Education programs and publications.

Dale A. Davenport, Hoover Penrod PLC / Harrisonburg (Expand/Collapse Bio)

Dale A. Davenport, co-author of Chapter 4 of this book, practices in the areas of bankruptcy and general business law. He earned a B.A., summa cum laude, in 1973 from Oxford College of Emory University and the University of Georgia and a J.D. in 1976 from the University of Virginia, Phi Beta Kappa. He is a member of the Virginia State Bar and is a past chair of the Board of Governors of the Bankruptcy Section.

Guy A. Davis, Protiviti, Inc. / Richmond (Expand/Collapse Bio)

Guy A. Davis, co-author of Chapter 14 of this book, is a managing director of Protiviti, Inc. and directs the firm’s Richmond office. He has 28 years of accounting, finance, and consulting experience in the areas of corporate restructuring, commercial litigation, financial investigations, and valuations. Mr. Davis earned a B.S. in finance from the University of Richmond and an M.B.A. from Loyola College in Baltimore. He is a Certified Public Accountant licensed in Virginia, a Certified Insolvency and Restructuring Advisor, a fellow in the American College of Bankruptcy, and a Certified Fraud Examiner. Throughout his career, Mr. Davis has performed financial and accounting analyses and testified as an expert in a broad range of litigation matters involving bankruptcy, forensic accounting, business valuation, breach of contract, lost profits, franchise termination, intellectual property valuation, and fraud.

Douglas M. Foley, McGuireWoods LLP / Norfolk (Expand/Collapse Bio)

Douglas M. Foley, co-author of Chapter 11, has substantial experience representing large and small creditors and debtors in a variety of business Chapter 11 proceedings throughout the United States. He has also had significant involvement in many of the largest Chapter 11 cases filed in the Eastern District of Virginia, including Workflow Management Inc., Circuit City Stores Inc., Movie Gallery Inc., Rowe Furniture Inc., US Airways Group Inc.; AMF Bowling Worldwide Inc.; Best Products Company Inc.; Heilig-Meyers Company; Trak Auto Corporation; and FasMart Convenience Stores. He also served as chairperson of McGuireWoods’ Restructuring and Insolvency Department from September 2006 through August 2012.

In 2011, Mr. Foley was inducted into the American College of Bankruptcy (Class XXII). He is certified in business bankruptcy law by the American Board of Certification Standards Committee, an affiliate of the American Bankruptcy Institute. He focuses his practice on all aspects of insolvency and debtor-creditor issues and has spoken at various bankruptcy bar and trade association meetings on bankruptcy topics.

Mr. Foley is a past chairperson of the Virginia State Bar Bankruptcy Law Section Board of Governors. Following law school, he served as a law clerk for the Honorable Loren A. Smith, Chief Judge at the U.S. Court of Federal Claims, and for the Chief Judge Douglas O. Tice Jr. of the U.S. Bankruptcy Court for the Eastern District of Virginia.

David W. Gaffey, Whiteford Taylor & Preston, LLP / Falls Church (Expand/Collapse Bio)

David W. Gaffey, co-author of Chapter 13 of this book, is an associate in the Falls Church office of Whiteford, Taylor & Preston, LLP. His practice primarily focuses on business bankruptcy, creditors’ rights, and out-of-court workouts. Prior to joining Whiteford, Taylor & Preston, LLP, he served as law clerk to the Honorable Kevin R. Huennekens in the United States Bankruptcy Court for the Eastern District of Virginia, Richmond Division, from 2011 to 2012. He earned a B.A. in History with a minor in Economics magna cum laude from Duke University in 2006, and a J.D. with honors from The George Washington University Law School in 2010. He is admitted to practice in Virginia and Massachusetts, and is a member of the American Bankruptcy Institute, American Bar Association, Virginia Bar Association, Walter Chandler American Inn of Court (Washington, D.C. chapter), Northern Virginia Bankruptcy Bar Association, and Turnaround Management Association. He was named a Virginia “Rising Star” in 2016 by Super Lawyers magazine.

John P. Goetz, John Goetz Law, PLC / Warrenton (Expand/Collapse Bio)

John P. Goetz, co-author of Chapter 2, earned a B.S. from Liberty University and a J.D. from Liberty University School of Law. He practices with the firm of John Goetz Law, PLC, in Warrenton, Virginia, and is the owner of the same. Mr. Goetz represents consumer debtors in Chapter 7 and Chapter 13 Bankruptcies and represents small businesses in Chapter 7 Bankruptcies. Mr. Goetz is a member of the Bankruptcy Law Section of the Virginia State Bar and the National Association of Consumer Bankruptcy Attorneys.

Michael E. Hastings, Whiteford Taylor & Preston, LLP / Roanoke (Expand/Collapse Bio)

Michael E. Hastings, co-author of Chapter 13, is a partner at Whiteford Taylor & Preston, LLP. Mr. Hastings has more than 23 years of experience representing clients in bankruptcy cases, insolvency and default situations and in commercial litigation. He has significant experience representing distressed companies and secured and unsecured lenders in out-of-court workouts, bankruptcy cases, and state and federal court litigation. He has extensive experience in the sale and purchase of businesses and/or assets in bankruptcy and pursuant to Article 9 of the Uniform Commercial Code. Mr. Hastings also has experience representing debtors, lenders and creditors’ committees in complex Chapter 11 bankruptcy cases involving sophisticated issues such as contested plan confirmation hearings, debtor in possession financing, contested asset purchase/sale litigation, lien validity and priority litigation, jurisdictional and venue disputes, complex avoidance action litigation, and litigation concerning fiduciary duties.

Mr. Hastings has been involved in bankruptcy cases concerning manufacturing, energy, health care, financial services, technology and distribution and logistics companies primarily in Virginia, New York and Delaware; however, he has represented clients in bankruptcy cases nationwide. In addition, Mr. Hastings has received the following recognitions: AV Peer Review Rated in Martindale-Hubbell; recognized in Chambers USA: America’s Leading Lawyers for Business, published by Chambers and Partners, in 2015 and 2016; listed in Virginia Super Lawyers, 2007 through the present, including being named among “Top 50 Virginia Lawyers” in 2010 and 2011, and among the “Top 100 Virginia Lawyers” in 2012 and 2014 through 2016; and listed in Virginia Business magazine’s “Legal Elite—Virginia’s Best Lawyers” from 2007 to the present. Mr. Hastings is the former Chair of the Virginia Bar Association’s Bankruptcy Law Section Council.

Dion W. Hayes, McGuireWoods LLP / Richmond (Expand/Collapse Bio)

Dion W. Hayes, co-author of Chapter 11 of this book, is a partner in the Richmond office of McGuireWoods LLP, where he serves as chair of McGuireWoods’ 40-attorney restructuring and insolvency department. Since 1992, he has focused his practice on insolvency law and financial restructuring, including bankruptcy, out-of-court restructurings, distressed asset acquisitions and recapitalizations, and related litigation. He has particular recent experience in the coal, metals mining, and healthcare industries. He is currently co-counsel for the dip and 1L lenders in the Patriot Coal II, Alpha Natural Resources, and PennVirginia Corporation Chapter 11 cases (E.D. Va.) and counsel for a financial institution in the Telexfree Ponzi scheme Chapter 11 case (D. Mass.). He has recently appeared in bankruptcy courts and other federal courts in Delaware, Florida, New York, Texas, and Virginia.

Mr. Hayes received his J.D. from William & Mary Law School in 1992 and his B.A. from the University of Virginia in 1989. He has been selected for inclusion in Chambers USA (Tier 1) for Bankruptcy; The Best Lawyers in America in Bankruptcy and Creditor/Debtor Rights; Super Lawyers in Bankruptcy & Creditor/Debtor Rights, Banking, and Business Litigation; and the Legal Elite in Bankruptcy. He works out of McGuireWoods’ Richmond and New York offices and is admitted to practice in the District of Columbia, Maryland, New York, and Virginia.

Steven L. Higgs, Steven L. Higgs, P.C. / Roanoke (Expand/Collapse Bio)

Steven L. Higgs, co-author of Chapters 3 and 15 of this book, is the principal of Steven L. Higgs, P.C. in Roanoke. His areas of practice include representing creditors in bankruptcy cases, creditors’ rights, civil litigation, and real estate. He is a Chapter 7 Bankruptcy Panel Trustee for the Western District of Virginia. Mr. Higgs received his B.A. from Washington & Lee University and his J.D. from the T.C. Williams School of Law, University of Richmond. He is a frequent speaker for Virginia CLE and is a contributing author to, in addition to this book, four Virginia CLE publications: Debt Collection for Virginia Lawyers—A Systematic Approach, Enforcement of Liens and Judgments in Virginia, The Virginia Lawyer—A Deskbook for Practitioners, and Virginia Law and Practice: A Handbook for Attorneys. Mr. Higgs is the author or co-author of more than 100 articles, seminar outlines, and book chapters on bankruptcy law, creditors’ rights law, legal ethics, and real estate foreclosures.

Mr. Higgs is a member and past president of the Roanoke Bar Association and a member of the American Bar Association, the Virginia Bar Association, and the American Bankruptcy Institute. He is a Fellow of the American Bar Foundation, the Litigation Counsel of America, the National Conference of Bar Presidents, the Virginia Law Foundation, and the Roanoke Law Foundation. He is board certified by the American Board of Certification in both creditors’ rights law and consumer bankruptcy law.

Hannah W. Hutman, Hoover Penrod PLC / Harrisonburg (Expand/Collapse Bio)

Hannah W. Hutman, co-author of Chapter 4 of this book, represents businesses and individuals in bankruptcy proceedings and insolvency related matters. She earned a B.A., summa cum laude, in 2003 from Columbia Union College and a J.D. in 2006 from the Marshall Wythe School of Law at the College of William and Mary. Ms. Hutman is a member of the panel of Chapter 7 Trustees for the Western District of Virginia. She is also a member of the Virginia State Bar and board member of the Bankruptcy Section of the Board of Governors.

Christopher A. Jones, Whiteford Taylor & Preston, LLP / Falls Church (Expand/Collapse Bio)

Christopher Jones, co-author of Chapter 13 of this Book, is a partner with Whiteford Taylor & Preston, LLP. He focuses his practice in all aspects of Chapter 11 bankruptcy law and insolvency related litigation. Mr. Jones regularly represents businesses in their restructuring efforts and throughout their liquidation. He routinely advises business owners, directors and officers regarding their duties and obligations when a company is distressed. Mr. Jones has served as counsel to official committees in numerous Chapter 11 bankruptcy cases in Virginia. He has also represented bankruptcy trustees and liquidating agents in a variety of litigation matters. Mr. Jones has testified as an expert witness regarding the reasonableness of attorneys’ fees in a Chapter 11 case. In addition to his work in the insolvency arena, Mr. Jones also has extensive experience in commercial litigation matters in federal court.

In addition to his law practice, Mr. Jones serves on the Board of the Northern Virginia Bankruptcy Bar Association and is a past-President of the Association. He also serves as Vice Chair of the Board of Governors of the Bankruptcy Law Section for the Virginia State Bar, and is the Vice Chair of the VBA’s Bankruptcy Law Section Council.

Mr. Jones has been listed in Virginia Business magazine’s “Legal Elite—Virginia’s Best Lawyers” and in Best Lawyers in America. He has also been selected as a Super Lawyer in Virginia. Mr. Jones is AV Peer Review Rated in Martindale-Hubbell. He is a 1992 graduate of Duke University and a 1996 graduate of the University of Richmond School of Law.

Mark C. Leffler, Boleman Law Firm, P.C. / Richmond and Virginia Beach (Expand/Collapse Bio)

Mark C. Leffler, author of Chapter 1 of this book, is a shareholder with the Boleman Law Firm, P.C. He is President of the NACTT Academy for Consumer Bankruptcy Education and writes a recurring column for the Academy on post-confirmation issues in Chapter 13. Mr. Leffler is AV rated by Martindale Hubbell. He is a frequent speaker on bankruptcy for the National Association of Chapter 13 Trustees (NACTT) and Virginia CLE, and he is a member of the American Bankruptcy Institute (ABI) Consumer Commission, Chapter 7 Committee, and a Member of the Board of Governors for the VSB Bankruptcy Section. Mr. Leffler is a native of Williamsburg, Virginia, and received his law degree from Duquesne University School of Law in Pittsburgh, Pennsylvania.

Dennis T. Lewandowski, Kaufman & Canoles, P.C. / Norfolk (Expand/Collapse Bio)

Dennis T. Lewandowski, co-author of Chapter 5 of this book, is a partner with Kaufman & Canoles, P.C., where he is co-chair of the firm’s Bankruptcy, Creditor’s Rights, and Business Restructuring Group. He earned a law degree from the University of Notre Dame in 1982, studied at Notre Dame’s London Law Centre, and earned a bachelor’s degree from the University of Pittsburgh in 1979, summa cum laude, receiving the designation of “University Scholar.” Mr. Lewandowski specializes in bankruptcy and creditors right’s litigation in bankruptcy, state, and federal courts. He has served as Chair of the Bankruptcy Law Section of the Virginia State Bar as well as Chair of the Bankruptcy Law Section of the Virginia Bar Association. He is also a co-founder and past President of the Tidewater Bankruptcy Bar Association. Mr. Lewandowski is listed in Best Lawyers in America (in 2012 as Norfolk Bankruptcy and Creditor’s Rights Law Lawyer of the Year) and Virginia Business’ “Legal Elite” for bankruptcy-creditor’s rights. He regularly participates as a speaker and author on bankruptcy and creditors rights issues for Virginia CLE.

Douglas E. Little, Robert E. Musselman & Associates / Charlottesville (Expand/Collapse Bio)

Douglas E. Little, author of Chapter 9 of this book, practices in the areas of bankruptcy law, real estate law, corporate and tax law, and wills and estates law. He served as a sergeant with the United States Army, working in military intelligence, from 1969 until 1971. Mr. Little earned a B.A. from Yale University in 1968 and a J.D. from the University of Virginia in 1975. He was admitted to the Virginia State Bar in 1975 and is also admitted to practice before the United States District Court for the Western District of Virginia, the United States Court of Appeals for the Fourth Circuit, and the United States Tax Court. Mr. Little is a member of the Charlottesville-Albemarle Bar Association and the Virginia State Bar. His reported cases include Bowles v. United States and Reynolds v. United States.

John K. Lyons, Protiviti, Inc. / Baltimore, MD (Expand/Collapse Bio)

John K. Lyons, co-author of Chapter 14 of this book, is a managing director of Protiviti, Inc., where he heads the Tax Advisory Services for the firm’s Litigation, Restructuring, and Investigative Services division. Mr. Lyons began his career with Price Waterhouse & Co., joined C.W. Amos in 1988, and moved to PENTA Advisory Services in 1999, where he established the firm’s tax practice. PENTA Advisory Services was acquired by Protiviti, Inc. in 2007. Mr. Lyons earned a B.S. in accounting with honors and distinction in business studies from Stockton State College and J.D. and M.B.A. degrees from the University of Maryland. He is a certified Public accountant and a member in good standing of the Maryland Bar. He is a member of the American Institute of Certified Public Accountants, the Maryland Association of Certified Public Accountants, the Association of Insolvency and Reorganization Accountants, the Tax Sections of the American Bar Association and the Maryland Bar Association and the American Bankruptcy Institute.

Mr. Lyons is responsible for the administration of a wide variety of tax engagements encompassing a full range of tax services for partnerships, corporations, and individuals. His expertise includes partnership taxation, property management review, reorganization, debt restructuring, and merger and acquisition tax planning. Mr. Lyons has testified as an expert in tax and accounting matters before the United States Bankruptcy Court and the state court in Pennsylvania.

Bruce H. Matson, LeClair Ryan, P.C. / Richmond (Expand/Collapse Bio)

Bruce H. Matson, co-author of Chapter 16 of this book, is a member of LeClair Ryan, a full-service law firm with offices in ten states and the District of Columbia. His practice focuses primarily on business bankruptcy and creditors’ rights litigation. Mr. Matson earned an A.B. from the College of William and Mary and a J.D. from the Marshall-Wythe School of Law at the College of William and Mary. He is a member of the American Bar Association, the Virginia State Bar, and the Richmond Bar Association. Mr. Matson has been selected as one of The Best Lawyers in America and among Virginia’s Legal Elite. He is a frequent author and speaker on bankruptcy and commercial law matters, and is an adjunct professor at the T.C. Williams School of Law at the University of Richmond.

Richard C. Maxwell, Woods Rogers PLC / Roanoke (Expand/Collapse Bio)

Richard C. Maxwell, author of Chapter 12 of this book, is a member of the firm of Woods Rogers PLC. He is head of the firm’s Bankruptcy and Creditors’ Rights Group. His practice area includes bankruptcy and creditors’ rights, commercial law, and equine law. He is a Fellow in the American College of Bankruptcy. He is also the former Director and Chairman of the Bankruptcy Section of the Virginia State Bar, the former Chairman of the Advanced Consumer Bankruptcy Law Conference, and serves on the planning committee for the Mid-Atlantic Institute on Bankruptcy and Reorganization Practice. He is the editor of the materials on Enforcement of Federal Liens and Foreign State Court Judgments contained in Enforcement of Liens and Judgments in Virginia published by the Virginia Law Foundation. Mr. Maxwell earned a bachelor’s degree from Lafayette College, a masters of business administration degree from Eastern Michigan University, and a law degree, cum laude, from the University of Richmond where he was a member of the Order of the Coif. He has been recognized in the Best Lawyers in America, Super Lawyers, and named as a Legal Elite by the Virginia Business magazine.

Jeremy B. Root, Blankingship & Keith, P.C / Fairfax (Expand/Collapse Bio)

Jeremy B. Root, co-author of Chapters 3 and 15 of this book, is a principal with Blankingship & Keith, P.C., where his practice combines the trans-actional aspects of commercial real estate, such as commercial lending, acquisition, development, and leasing, with the enforcement of real estate liens through foreclosures and receiverships. He frequently represents creditors in bankruptcy matters, including relief from the automatic stay, claim objections, and preference defenses. Over the past fourteen years, Mr. Root has conducted hundreds of foreclosures, including multiple complex commercial matters. Mr. Root received his B.A. from Wheaton College (Ill.) in 1997, and his J.D. from George Mason University School of Law in 2003, where he served on the George Mason Law Review. Since 2012, he has served as a member of the Real Estate Section Council of the Virginia Bar Association, and is currently serving as vice-president of the Northern Virginia Bankruptcy Bar Association.

Hon. Frank J. Santoro, United States Bankruptcy Court, Eastern District of Virginia / Norfolk (Expand/Collapse Bio)

Hon. Frank J. Santoro, co-author of Chapter 7 of this book, before taking the bench, was a partner with Marcus, Santoro & Kozak, P.C. in Chesapeake. His practice focused exclusively on bankruptcy, corporate reorganization, and corporate finance since 1981. As Chapter 13 Trustee for filings in the Norfolk and Newport News divisions of the Eastern District of Virginia, Mr. Santoro supervised the administration of 6,000 to 7,000 bankruptcy cases, oversaw a staff of twenty, and was responsible for distributions to creditors in the $25 million to $30 million per year range. Mr. Santoro graduated in 1976 from Allegheny College, Phi Beta Kappa, with degrees in political science and economics-finance, obtaining honors in both fields of study. He graduated from the Marshall Wythe School of Law at the College of William and Mary in 1979. Mr. Santoro is a frequent speaker on bankruptcy and has participated in Virginia CLE’s Annual Mid-Atlantic Institute on Bankruptcy and Reorganization Practice since 1987. He has also been a speaker at the Southeastern Bankruptcy Law Institute since 2000.

Mr. Santoro is a member of the American Bar Association, the Virginia State Bar, the Norfolk/Portsmouth Bar Association, the Portsmouth Bar Association, the Chesapeake Bar Association, the Federal Bar Association, and the Tidewater Bankruptcy Bar Association. He served as founding director and former chair of the board of directors of the Bankruptcy Law Section of the Virginia State Bar. Mr. Santoro is also a member of the Association of Trial Lawyers of America; served as a past President of the Norfolk Chapter of the Federal Bar Association; has been listed in Best Lawyers in America since 1989; is a member of the Merit Selection Panel for vacant positions on the United States Bankruptcy Court, Eastern District of Virginia; and is a Fellow of the American College of Bankruptcy.

Lynn L. Tavenner, Tavenner & Beran PLC / Richmond (Expand/Collapse Bio)

Lynn L. Tavenner, co-author of Chapter 8 of this book, is a founding member of the Richmond, Virginia bankruptcy boutique of Tavenner & Beran, PLC, where she has practiced law since 2002. She also has served as a receiver, liquidation trustee, litigation trustee, Chapter 11 trustee, and, since 1997, as a member of the Richmond Chapter 7 panel of trustees. Before entering private practice, Ms. Tavenner served as a law clerk to The Honorable Douglas O. Tice Jr. in the U.S. Bankruptcy Court, Eastern District of Virginia. She is a Fellow of the American College of Bankruptcy, former member of the Board of Directors for the American Bankruptcy Institute and current member of the Board and Chair of the Executive Committee for the Credit Abuse Resistance Education (CARE) organization. She also has served on the Board of Governors for the Bankruptcy Section of the Virginia State Bar. An AV Peer Review Rated attorney by Martindale-Hubbell, Ms. Tavenner has been recognized in her field in numerous editions of Best Lawyers in America, Virginia Super Lawyers, and Virginia Business Magazine, including recognition for five consecutive years by Best Lawyers as the Richmond Area Bankruptcy Lawyer of the Year in her fields. She earned her undergraduate degree magna cum laude from Bridgewater College and her J.D. from Washington & Lee University School of Law.

Hon. Douglas O. Tice, Jr., United States Bankruptcy Court, Eastern District of Virginia / Richmond (Expand/Collapse Bio)

Hon. Douglas O. Tice, Jr. (now retired), co-author of Chapter 8 of this book, was formerly Chief United States Bankruptcy Judge for the Eastern District of Virginia, sitting in Richmond. He earned undergraduate and law degrees from the University of North Carolina at Chapel Hill. Judge Tice was appointed to the bench in September 1987 and reappointed for a term ending September 2015. He was appointed Chief Judge in 1999. He is a former standing Chapter 13 trustee and Chapter 7 panel trustee. Judge Tice is a member of the National Conference of Bankruptcy Judges and the American Bankruptcy Institute, and a Fellow of the American College of Bankruptcy.

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