Business Reorganization Committee

ABI Committee News

Taxing Problems for Debtors - Treatment of Property Taxes

Davis Polk & Wardwell LLP; New York

In bankruptcy, a debtor often faces assessments for interest and penalties on property taxes from a variety of taxing jurisdictions. Addressing these claims can be frustrating and time-consuming. Frequently, the most confusing assessments are those for tax periods that straddle the petition date: Is the entire tax post-petition and thus entitled to administrative-expense treatment under § 503(b)(1)(B) of the Bankruptcy Code? Is the tax all pre-petition and thus a pre-petition unsecured claim entitled to priority status under § 507(a)(8)? Is the tax split according to the pre-petition and post-petition periods? The difference is important because administrative-expense claims must be paid in full before payment may be made on pre-petition unsecured claims, and administrative-expense claims may also be entitled to penalties and interest.

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Digging the Nail Out of the Coffin: LLC Law Responds to Olmstead

; Atlanta

The Limited Liability Company (“LLC”) is the secret agent of business entities.  Part corporation, part partnership, this hybrid business entity enables its members and managers to take advantage of both the limited liability afforded to shareholders and directors of corporations and the pass through tax advantages available to partnerships. It is precisely this mongrel version of a business – occupying the twilight between corporation and partnerships – that leads to unpredictable and inconsistent treatment in the courts.  A recent decision from the Florida Supreme Court, Olmstead v. Federal Trade Commission, [1] epitomizes the serpentine tangle surrounding LLCs.

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ABI's Winter Leadership Conference Educational Materials

Another WLC session of interest was "Where the Rubber Meets the Road: Proofs of Claim, Claims Objections and Amendments to Rules 3001, 3002," presented by Lawrence R. Ahern, III, Moderator of Burr & Forman LLP in Nashville, Tenn; Patti H. Bass of Bass & Associates, PC in Tucson, Ariz.; Hon. C. Ray Mullins of the U.S. Bankruptcy Court (N.D. Ga.), Atlanta; and John Rao of the National Consumer Law Center in Boston. This panel focused on claims in recent caselaw, as well as real estate and environmental claims issues in recent caselaw.

Where the Rubber Meets the Road: Proofs of Claim, Claims Objections and Amendments to Rules 3001, 3002


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