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