JULY 2020 Meeting – “Bankruptcy Bumps in the Road: The Uninvited (sic) Parties”

The monthly meeting for July,  2020 will be held on Tuesday,  July 28,  2020 as an ONLINE CONFERENCE.

Social* begins at 5:00 p.m., followed by an informative presentation at 5:30 p.m.

*(Comestibles and libations are the participant’s own responsibility).

*****************

The presentation for July, 2020 will be “Bankruptcy Bumps in the Road: The Uninvited (sic) Parties”,  presented by
Mr. Ronald ‘Ronnie’ Hornberger of Plunkett Griesenbeck & Mimari, Inc.

The invitation to the Zoom Conference is in the email sent to you, notifying you of this meeting.

CLE CREDIT will be provided to participants.  Following the session, please email your name and State Bar number to Trey White at treywhite@villawhite.com.

To prevent any zoom-bombing, Mr. Hornberger will lock the meeting by 5:40 p.m.  Once the meeting is locked, no one will be able to get in, even with the password.  A recording of the session is anticipated, so that may be made available to anyone who can’t attend the meeting.  Upon  viewing the session, they can apply for CLE credit through the State Bar of Texas.

************** Following is Mr. Hornberger’s Paper *******************

Bankruptcy Bumps in the Road: The Uninvited (Sic) Parties

For the San Antonio Bankruptcy Bar Association

By Ronnie Hornberger

This will be an interactive discussion. Bring your questions, you war stories and your nightmare scenarios!

Suggested Discussion Topics List

  1. Chapter 11 Trustee, Examiner and Committees
    1. The Chapter 11 Trustee
      1. Who IS this person?
      1. Who invited this person to “our party”?
      1. WHAT does this person DO?
      1. Who PAYS for this person?
      1. How do we get rid of this person?
    1. The Examiner
      1. WHO is THIS person?
      1. WHO invited THIS person?
      1. WHAT does this person DO?
      1. Who PAYS for this person?
      1. To WHOM does this person report?
    1. Committees
      1. Unsecured Creditors’ Committee
      1. Other Committees
        1. Equity Holders’ Committee
        1. Bondholders’ Committee
        1. other
  2. Chapter 11 Other Required Parties
    1. The Railroad Case
      1. Chapter 11 Trustee
      1. Chapter 11 Trustee’s Attorney
      1. Chapter 11 Trustee’s Consultant(s)
    1. The Small Business Case Trustee
      1. Debtor is in Possession but there is a Trustee anyway? What does this quasi-Trustee do?
      1. Removal of Debtor from possession? What then?
    1. The Healthcare Ombudsman
      1. WHO is THIS?
      1. What does this person DO?
    1. The Consumer Ombudsman
      1. WHAT?

Statute References

[all links are to the United States Code at the Code site at uscode.house.gov  ].

Trustees

28 USC 589a: United States Trustee System Fund

 §  307 United States trustee

 §  321 Eligibility to serve as trustee

 §  322 Qualification of trustee

 §  323 Role and capacity of trusted

§  324 Removal of trustee or examiner

§  326 Limitations on Compensation of trustee

 §  330 Compensation of officers

Chapter 7 Cases

§  701 Interim trustee [in chapter 7 cases]

§ 702 Election of trustee

 §  703 Successor trustee

 §  721 Authorization to operate business

§  723 Rights of partnership trustee against general partners

 §  782 Selection of trustee [Clearing Bank Liquidation]

 §  783 Additional powers of trustee

Chapter 11 Cases

 §  1104 Appointment of Trustee or examiner

§ 1105 Termination of trustee’s appointment

§  1106 Duties of trustee and examiner

 §  1107 Rights, powers and duties of debtor in possession

 §  1108 Authorization to operate business

 §  1109 Right to.be heard

 §  1112(b)(1) [references to  §  1104(a) re appointment of examiner or trustee]

 §  1116 Duties of trustee or debtor in possession in small business cases

 §  1121(c)(1) Who may file a plan

Chapter 12 Cases

§  1202 Trustee [Chapter 12 cases]

Chapter 13 Cases

§  1302 Trustee [Chapter 13 cases]

Railroad Reorganizations

 §  1161 Inapplicability of other sections

 §  1163 Appointment of trustee

Subchapter V Small Business Debtor Reorganization

 §  1181 Inapplicability of other sections

(a) In General.—Sections 105(d), 1101(1), 1104, 1105, 1106, 1107, 1108, 1115, 1116, 1121, 1123(a)(8), 1123(c), 1127, 1129(a)(15), 1129(b), 1129(c), 1129(e), and 1141(d)(5) of this title do not apply in a case under this subchapter.

(b) Court Authority.—Unless the court for cause orders otherwise, paragraphs (1), (2), and (4) of section 1102(a) and sections 1102(b), 1103, and 1125 of this title do not apply in a case under this subchapter.

(c) Special Rule for Discharge.—If a plan is confirmed under section 1191(b) of this title, section 1141(d) of this title shall not apply, except as provided in section 1192 of this title.

§  1183 Trustee [SURPRISE! It’s REQUIRED in every case and it looks a lot like chapters 12 and 13]

Chapter 11 Committees

 §  1102 Creditor’s and equity security holders’ committees

§  1103 Powers and duties of committees

Ombudsman

 §  332 Consumer privacy ombudsman

            See 363(b)(1)(B) hearing requirement

(a) If a hearing is required under section 363(b)(1)(B), the court shall order the United States trustee to appoint, not later than 7 days before the commencement of the hearing, 1 disinterested person (other than the United States trustee) to serve as the consumer privacy ombudsman in the case and shall require that notice of such hearing be timely given to such ombudsman.

(b) The consumer privacy ombudsman may appear and be heard at such hearing and shall provide to the court information to assist the court in its consideration of the facts, circumstances, and conditions of the proposed sale or lease of personally identifiable information under section 363(b)(1)(B). Such information may include presentation of-

(1) the debtor’s privacy policy;

(2) the potential losses or gains of privacy to consumers if such sale or such lease is approved by the court;

(3) the potential costs or benefits to consumers if such sale or such lease is approved by the court; and

(4) the potential alternatives that would mitigate potential privacy losses or potential costs to consumers.

(c) A consumer privacy ombudsman shall not disclose any personally identifiable information obtained by the ombudsman under this title.

 §  333 Appointment of patient care ombudsman

            See definition of “health care business” at  §  101(27a)

                         §  101 (27A) The term “health care business”-

(A) means any public or private entity (without regard to whether that entity is organized for profit or not for profit) that is primarily engaged in offering to the general public facilities and services for-

(i) the diagnosis or treatment of injury, deformity, or disease; and

(ii) surgical, drug treatment, psychiatric, or obstetric care; and

(B) includes-

(i) any-

(I) general or specialized hospital;

(II) ancillary ambulatory, emergency, or surgical treatment facility;

(III) hospice;

(IV) home health agency; and

(V) other health care institution that is similar to an entity referred to in subclause (I), (II), (III), or (IV); and

(ii) any long-term care facility, including any-

(I) skilled nursing facility;

(II) intermediate care facility;

(III) assisted living facility;

(IV) home for the aged;

(V) domiciliary care facility; and

(VI) health care institution that is related to a facility referred to in subclause (I), (II), (III), (IV), or (V), if that institution is primarily engaged in offering room, board, laundry, or personal assistance with activities of daily living and incidentals to activities of daily living.

And the next page refers you to my favorite “free site” at the Cornell Law School’s Legal Information Institute. Great site; great resource; go and visit and donate/join.–rh

From Legal Information Institute (LII at Cornell Law School)

Bankruptcy Code on-line at LII:

  1. CHAPTER 1—GENERAL PROVISIONS (§§ 101 – 112)
  2. CHAPTER 3—CASE ADMINISTRATION (§§ 301 – 366)
  3. CHAPTER 5—CREDITORS, THE DEBTOR, AND THE ESTATE (§§ 501 – 562)
  4. CHAPTER 7—LIQUIDATION (§§ 701 – 784)
  5. CHAPTER 9—ADJUSTMENT OF DEBTS OF A MUNICIPALITY (§§ 901 – 946)
  6. CHAPTER 11—REORGANIZATION (§§ 1101 – 1195)
  7. CHAPTER 12—ADJUSTMENT OF DEBTS OF A FAMILY FARMER OR FISHERMAN WITH REGULAR ANNUAL INCOME (§§ 1201 – 1232)
  8. CHAPTER 13—ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH REGULAR INCOME (§§ 1301 – 1330)
  9. CHAPTER 15—ANCILLARY AND OTHER CROSS-BORDER CASES (§§ 1501 – 1532)

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