It is hard to peruse media outlets without hearing about bitcoin and other types of cryptocurrency. But what is Bitcoin? Is it just another form of currency, or is it a commodity? It depends on who you ask, and bankruptcy courts are beginning to weigh in on the subject. Read More… “Bitcoin in Bankruptcy: Commodity or Currency?”
Many Wisconsin business advisors fail to consider using a receivership under Wisconsin’s Chapter 128 as a tool for selling a going concern business. Yet, in many instances, it is the optimal method for such a sale.
For the past 15 to 20 years, Wisconsin lenders have used Chapter 128 receiverships to sell going concern businesses. A Lender, however, may only compel such a receivership when it can demonstrate that the borrower is insolvent on a modified balance sheet basis.
In contrast, any business may, at any time, voluntarily subject itself to a Chapter 128 receivership. There is no insolvency requirement. Read More… “Voluntary Receivership: An Overlooked Option for Obtaining a Going Concern Premium in a Business Sale”
Residential mortgage servicers should take notice. A recent case from the U.S. Bankruptcy Court for the District of Vermont handed down what may be the first instance of punitive sanctions under Federal Bankruptcy Rule of Procedure 3002.1. The Court levied a $375,000 sanction to a mortgage servicer for its failure to comply with Rule 3002.1’s notice requirements despite the court’s repeated instructions to do so. This rule could spur similar cases for violations of Rule 3002.1, especially for repeat offenders. Read More… “Mortgage Servicers Beware of Possible Sanctions in Chapter 13 Bankruptcies”