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Definition of “Partner” in Bankruptcy Reorganization Plan Controls Subordination of Claims, Not Definitions under State Law

Bankruptcy Articles — Wed, 08 Dec 2010 02:13:20 +0000

By: Jason L. Gould
St. John’s Law Student
American Bankruptcy Institute Law Review Staff

The Seventh Circuit, in In re Altheimer & Gray,[1] held that the meaning of “partner” in a bankruptcy proceeding would be determined in accordance with the terms of the plan of reorganization, not state partnership law.[2] Altheimer & Gray filed for bankruptcy in 2003.[3] According to his contract, Mark Berens was a “Non-Unit Partner,”[4] meaning he possessed no interest in the firm’s profit-share and held no voting power, unlike the “Unit Partners.”[5] Altheimer & Gray’s reorganization plan subordinated the claims of both “Non-Unit Partners” and “Unit Partners” to those of its other creditors.[6] Berens argued that he was not a partner under the statutory definition of Illinois’ Uniform Partnership Act, and therefore, should not have his $300,000 claim subordinated.[7] Without looking to state law, the court relied on 11 U.S.C. § 1141(a), which states, “the provisions of a confirmed plan bind the debtor [and any other such entity under the plan] . . . whether or not the claim . . . is impaired under the plan.”[8]

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What does the failure of proof under part 07 for?

Bankruptcy Articles — Sun, 13 Jun 2010 23:59:41 +0000

In recent years, debt has become unbearable suffering of many people bankruptcy is the only way. U.S. law to individuals, companies, partnerships, or companies like you and me, said he may seek relief from debt under Chapter 7 bankruptcy.
October 17, 2005, the evidence was introduced last year passed a new bankruptcy law. If it is [...]

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Bankruptcy Chapter 7 Exemptions-what Personal Possessions are Exempt Under Chapter 7?

Bankruptcy Articles — Sun, 02 May 2010 00:18:46 +0000

If you are looking for bankruptcy chapter 7 exemptions, there are certainly some very important facts you need o know in order to achieve this. Very simply, a chapter 7 exemption are simply assets you get to keep when filing for chapter 7 bankruptcy. Chapter 7, unlike 11 and 13, forces you to [...]

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