Practicing Under the New Bankruptcy Law - Channeling Injunctions and Third Party Debt: Can I Skip the Bankruptcy and Still Dump the Debt? From "Practicing Under the New Bankruptcy Law" seminar held Sept. 21, 2007 in New Orleans
1.0 Total CLE Units (No Ethics)
Price:
$30.00 (provides online access for 3 months after purchase).
The greatest enticement for a debtor to seek relief under the Bankruptcy Code is the availability of a discharge which, pursuant to Section 524, bars by permanent injunction future attempts to collect pre-filing debts from the debtor, his future earnings or property interests acquired after the filing. However, pursuant to 524(e) the debtor's discharge does not affect the liability of co-obligors and, thus, provides no relief to non-debtors who may be liable with the debtor for the discharged debts. In many instances, for both business and legal reasons, it may not be practical or wise for such non-debtors to seek bankruptcy protection themselves. As a result, creative lawyers have sought to obtain the same or similar relief for non-bankrupt parent companies, affiliates, and their officers and directors as that normally only available to the debtor itself. In essence, they try to expand the discharge to include these non-debtor entities either by including third party releases in Chapter 11 plans or setting up so called "channeling injunctions."
Credit Information
1.0 Total CLE Units (No Ethics)
Faculty
Jan M. Hayden, Heller, Draper, Hayden, Patrick & Horn, New Orleans, LA