Despite decades of litigation, asbestos claims still seem to find their way into bankruptcy courtrooms. To respond to the growing number of asbestos-related bankruptcies, Congress enacted section 524(g) to the Bankruptcy Code. In general, Chapter 11 debtors utilizing section 524(g) may channel present and future mass tort related claims to a settlement trust. Doing so effectively discharges these debtors of the obligation to adjudicate present and future mass tort claims.
Outside of bankruptcy law, it is perfectly acceptable for a debtor to prefer one creditor over another. For example, in any given month a consumer holding two credit cards may very well choose to pay off one credit card in its entirety while making only the minimum payment on the other. Bankruptcy law, on the other hand, purports to promote fairness and equality amongst similarly situated creditors.
Many elder law cases occur after a person loses their mental capacity as a result of old age. It’s not uncommon for businesses to persuade impaired elders to enter into unsavory contracts or a relative seeks to be appointed guardian for a person with dementia or diminishing health. The end result could be financial exploitation or a misappropriation of funds. In one example, (names and events have been changed to […]
Sometimes people can be legitimately sued without any wrongdoing: Defendants find preference actions to be particularly objectionable. In these actions, the defendant did nothing wrong and is only being sued for the return of payments because they were made by a debtor in bankruptcy within the 90 days (or 1 year for insiders) preceding the bankruptcy filing. Bankruptcy preference actions brought against businesses after a customer files for bankruptcy can […]
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Delaware Guardianship Actions and the Ethical Considerations in Chancery Court
By: David J. Ferry, Jr., Esq. Ferry Joseph, P.A. With the population of older Americans on the rise, issues related, in general, to elder law, and specifically to guardianship actions, are requiring greater attention. Of course guardianship actions do not solely affect the elderly, as many are filed in connection with younger adults who, for one reason or another, lack the ability to care for themselves and/or their property. It […]