Heidi J. Sorvino, Chair of White and Williams' Financial Restructuring and Bankruptcy Practice and Managing Partner of the New York Office, and Associates, Andrew E. Arthur and Michael Ingrassia, recently co-authored “The $7.5 Million Subchapter V Debt Limit Should be Reinstated," published by the American Bankruptcy Institute Journal. The article detailed a few reasons why restructuring professionals have urged Congress to reinstate the elevated debt limit and the benefits that could stem from this increase.
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Stay tuned – another shoe is likely to drop from Washington D.C. on the CTA (“Corporate Transparency Act”) in the next three weeks. As we previously reported on February 18, 2025, the U.S. District Court for the Eastern District of Texas stayed its injunction on the CTA’s beneficial ownership information (“BOI”) reporting requirements. The Financial Crimes Enforcement Network (“FinCEN”) responded by posting an alert on its official government website[1] extending the deadline to submit BOI reports to March 21, 2025, for most reporting companies. However, on ... Continue Reading
The Corporate Transparency Act (CTA) is back on. A federal judge in Texas has lifted the preliminary injunction issued in Smith v. U.S. Department of the Treasury, 6:24-cv-00336 (E.D. Tex.), which had previously prevented the government from enforcing beneficial ownership information (“BOI”) requirements, nationwide. On February 19, 2025, the Financial Crimes Enforcement Network (“FinCEN”) issued a notice1 communicating the new reporting deadline of March 21, 2025, as a response to the Smith ruling. As such, FinCEN will soon begin enforcing the reporting ... Continue Reading
Lenders and other creditors often obtain consent judgment liens against an individual guarantor’s residence as additional security during or after commercial foreclosure proceedings against real estate or other assets owned by an affiliated corporate borrower. Is this type of consensual lien against a guarantor’s home at risk if the guarantor later files for protection under Chapter 7 of the U.S. Bankruptcy Code (Bankruptcy Code) and seeks to set aside or avoid the lien because it impairs the guarantor’s homestead exemption? The answer is yes according to most, but not ... Continue Reading
December was a busy month of back-and-forth, on again and off again, for the Corporate Transparency Act’s (“CTA”) beneficial ownership information reporting requirements. On Thursday, January 23, 2025, the Supreme Court weighed in by issuing a stay of the nationwide preliminary injunction that prevented enforcement of the CTA by the federal government. Today, January 24, 2025, FinCEN issued an instructive notice on its website, stating:
On January 23, 2025, the Supreme Court granted the government’s motion to stay a nationwide injunction issued by a federal judge in ... Continue Reading
The reporting requirements of the Corporate Transparency Act (“CTA”) are once again paused, according to a decision from the United States Court of Appeals for the Fifth Circuit (the “Fifth Circuit”) filed on December 26, 2024. Just earlier this week, a motions panel of the Fifth Circuit granted the United States government’s emergency motion for a stay pending appeal, which lifted the preliminary injunction that paused CTA requirements[1]. The United States Department of the Treasury’s Financial Crimes Enforcement Network (“FinCEN”) responded by extending ... Continue Reading