For a fifth consecutive year, Peter Ruggero was named a Rising Star in 2016 by the Super Lawyers’ rating service.
Creditors, in certain circumstances, can seek to put a debtor into an involuntary bankruptcy case. This is a serious and powerful remedy. And, if successful, an involuntary bankruptcy subjects the debtor to be overseen by the federal court system and laws. A threshold issue, however, is that the creditor’s claim must not be subject to a bona fide dispute. On February 3, 2014, the Court of Appeals for the Fifth Circuit in In re Green Hills Development Co., L.L.C., — F.3d —, 2014 WL 380386 (5th Cir. 2014) affirmed a dismissal of an involuntary bankruptcy case. The Court discussed the no bona fide dispute requirement. Notwithstanding that the involuntary bankruptcy was dismissed because the creditor’s claim was held subject to a bona fide dispute and was being litigated extensively in state court prior to the involuntary bankruptcy petition, the creditor avoided sanctions. The full opinion is available here.
Peter Ruggero has been elected to the Board of Directors for the South Texas College of Law Alumni Board. Mr. Ruggero will also serve on the Admissions Committee for the Alumni Board.
There is a likelihood that a businesses facing bankruptcy has net operating losses (NOLs). These NOLs might be available to offset taxable income in not only current and future years but also past years to a limited extent. Understanding the value of the NOLs is relevant to a feasibility analysis in confirming a chapter 11 plan. In addition, under stock sales, the NOLs might be able to be transferred to the purchaser. You should consult with a tax expert to determine the impact NOLs have on your business and specific goals you seek to accomplish.
In de la Pena Stettner v. Smith (In re IFS Financial Corp.), the US Court of Appeals for the Fifth Circuit affirmed that a chapter 7 debtor’s control over certain bank accounts was sufficient to to establish de facto ownership. Accordingly, the accounts were considered ‘property of the estate.’ A summary of the opinion and copy of opinion can be found here.