For ‘Sub V’ Eligibility, Count the Debt of Affiliates Liquidating in Chapter 7

January 11, 2024

For ‘Sub V’ Eligibility, Count the Debt of Affiliates Liquidating in Chapter 7

Bankruptcy court disregards SEC regulations defining ‘voting securities’ in deciding whether a Subchapter V debtor has ‘affiliates’ in bankruptcy.

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Opinion Link

View Opinion

https://abi-opinions.s3.amazonaws.com/Carter.pdf

Case Details

Case Citation

In re Carter, 23-54816 (Bankr. N.D. Ga. Dec. 13, 2023)

Case Name

In re Carter

Case Type

Business

Court

11th Circuit

Georgia

Georgia Northern District

Bankruptcy Tags

Business Reorganization

Small Business

Comments

Submitted by [email protected] on January 20, 2024 - 13:09

decision appears correct to me - 20% ownership is enough for affiliate definition and that is what debtor held. I am wondering if it would have made a difference if the two chapter 7 cases were both closed, but perhaps not since a corporation does not receive a discharge?