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Appendix 1: Bankruptcy/Insolvency―Comparison of Old and New Law
jae wook LEE  (Homepage)
2016-05-29 16:23:44, 조회 : 285, 추천 : 62
Appendix 1: Bankruptcy/Insolvency―Comparison of Old and New Law
                                


Old Law
New Law

Deadline to Reorganize

120 days to file a reorganization plan with indefinite extensions.

Debtor’s 120 day period to file a reorganization plan.  Can not extend beyond 18 months. 10.4.3

Fraudulent Transfer

One year prior to commencement of the case.

Extended to two years. 4.3.        

Commercial Leases

60 days deadline upon filing for debtors to assume or reject their commercial leases, but Judge could extend the period.  There was no limit on the number of extensions that may be granted.

Deadline increased to 210 days after petition for debtor to assume or reject leases.  Any further extension requires lessor’s consent.

Key Employee Compensation to Stay

Allowed generous key employee retention payments, and severance payments.

Payments only allowed if person has a bona fide job offer at same or greater rate of compensation.

Creditor’s ability to reclaim goods if not paid

20 days of receipt of goods.

45 days of filing for goods shipped to debtor. Within 20 days of filing ― requires the creditor to be paid in full before a Court approves a reorganization plan.

Chapter 13

A debtor must repay a portion of debts for three years.

If debtor’s income meets or exceeds the state medium income, repayment plans run for five years and debtor must pay off more of their auto loans. 9.5.3

Homestead Exemption

States allow debtor to protect some or all of his or her home equity from creditors.

Restricts the debtor’s ability to claim more generous state exemptions based upon length of residency. If homestead obtained by fraudulent conversion of non-exempt assets within 10 years of filing, exemption is reduced by the amount of such conversion. Also caps applicable state exemptions at $136,875 if: 1) the home was acquired less than 1,215 days before filing, or 2) the debtor has engaged in any of the criminal activities specified in §522(q).

Credit Counseling

No provision.

Debtor must meet with a credit counselor in the six months prior to applying for bankruptcy.



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