UNITED STATES BANKRUPTCY COURT DISTRICT OF MAINE In re: Sylvain J. Pinet Sr. and Heather M. Pinet, Debtors Chapter 13 Case No. ORDER CONFIRMING MODIFICATION OF CHAPTER 13 PLAN A chapter 13 debtor’s plan is constructed, in part, based on the debtor’s assertion of the value of a parcel of real estate. GO General Order Re: Chapter 7 Trustee Fees: GO Delegation of Authority to the Clerk of the Bankruptcy Court and his Deputies: GO Supersession of General Order , Adoption of Employee Dispute Resolution Plan as Modified November 6, GO Issuance of Orders to Show Cause for Failure to Pay Filing or Installment. Further Support. (Affirmation in Further Supp., ECF No. ) The New Century Bankruptcy Case On April 2, , New Century and certain of its affiliates filed chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware (the “Delaware Bankruptcy Court”). (In re New Century TRS Holdings, Inc., et al., BLS.
Immediately upon the recognition of a foreign main proceeding, the automatic stay and selected other provisions of the Bankruptcy Code take effect within the United States. The foreign representative is also authorized to operate the debtor's business in the ordinary course. The U. Through the recognition process, chapter 15 operates as the principal door of a foreign representative to the federal and state courts of the United States. Once recognized, a foreign representative may seek additional relief from the bankruptcy court or from other state and federal courts and is authorized to bring a full as opposed to ancillary bankruptcy case.
In addition, the representative is authorized to participate as a party of interest in a pending U. Chapter 15 also gives foreign creditors the right to participate in U. It also requires notice to foreign creditors concerning a U. One of the most important goals of chapter 15 is to promote cooperation and communication between U. This goal is accomplished by, among other things, explicitly charging the court and estate representatives to "cooperate to the maximum extent possible" with foreign courts and foreign representatives and authorizing direct communication between the court and authorized estate representatives and the foreign courts and foreign representatives.
If a full bankruptcy case is initiated by a foreign representative when there is a foreign main proceeding pending in another country , bankruptcy court jurisdiction is generally limited to the debtor's assets that are located in the United States. The limitation promotes cooperation with the foreign main proceeding by limiting the assets subject to U. Chapter 15 also provides rules to further cooperation where a case was filed under the Bankruptcy Code prior to recognition of the foreign representative and for coordination of more than on foreign proceeding.
It also proposed that Chapter 14 cases be heard by U. District judges, instead of bankruptcy court judges. A new report by the U. Treasury Department, the Orderly Liquidation Authority and Bankruptcy Reform, was issued in , with the proposal of eliminating the oversight of large financial institutions created by the Dodd-Frank Act. A Chapter 14 addition to the bankruptcy code was once again proposed.
In addition the combining these aspects into a Chapter 14, the new chapter would also work to make the oversight created by the Dodd-Frank Act unnecessary. There are, of course, different viewpoints on whether a Chapter 14 addition to the bankruptcy code is the best method for handling the failures of large financial institutions. Some support a Chapter 14, because they do not believe that financial corporations should be subjected to oversight, as required by Dodd-Frank. Others oppose a Chapter 14, because they say it is not workable in practice.
Chapter 14 is meant to be used by financial institutions who are in extreme financial distress, and who are so large that their failure would have an appreciable impact on the United States economy.
The main goal of Chapter 14 is to reorganize and restructure the debt in such a way as to avoid the irreversible step of a Chapter 11 bankruptcy. Although Chapter 14 is only a proposal at this point, and not law, it is clear that both existing law and proposed law on bankruptcy is complex.
A company or financial institution who is experiencing financial distress to the point of needing to file for bankruptcy should certainly work with experienced business attorney to resolve the situation. The attorney can help the company file for bankruptcy under one of the appropriate, currently-existing bankruptcy Chapters, unless and until Chapter 14 is passed as law. Her favorite part of the job was writing and editing, and she gradually transitioned to legal writing.
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