All items from Bankruptcy Case Blog

By:  Guillermo Martinez
St. John’s Law Student
American Bankruptcy Institute Law Review Staff
 
Two recent New York District Court cases disagree whether the principle established in the famous California Jewel v. Boxer[1] case applies to hourly matters upon the dissolution of New York law firms.

By: Shane Malone
St. John’s Law Student
American Bankruptcy Institute Law Review Staff
 

By: Erin Rieu-Sicart
St. John’s Law Student
American Bankruptcy Institute Law Review Staff
 
 
Finding that it would violate the absolute priority rule, the United States Bankruptcy Court for the Western District of North Carolina, in In re Carolina Internet, Ltd., held that an insolvent S corporation may not pay post-petition taxes on behalf of its shareholders because a corporation’s creditors have priority over its shareholders.[1] That approach highlights the problems bankruptcy creates for pass-through entities such as S corporations, because the benefits of successful post-petition operations flow to the creditors while the tax consequences of those operations are borne by the shareholders.
 
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 By: Joice Thomas
St. John’s University Law Student