Congratulations to Everett Green

I learned today that Everett Green will be the new Chair of the Business Law Section of the California Lawyers Association.   Congratulations Everett.

Remember, landlords are sacred cows in bankruptcy.

My most recent article published by the Los Angeles Daily Journal, Remember, landlords are sacred cows in bankruptcy, came out on May 20, 2021.  You can access the article here.  Landlords DJ 5-20-21.   Let me know what you think.

Message from University of West Los Angeles School of Law (UWLA) President Robert Brown (total good news).

Dear UWLA executive management team, faculty and staff. While it is fresh in my mind, I want to circle back and commend our entire institutional team on the recent great achievements. After tremendous efforts and team work by  all, we have achieved amazing institutional victories and goals. I want to ask everyone to reflect on what we recently achieved and then re-direct your energies and efforts to the formidable challenges facing us this year.

  1. In February of this year, we hosted a WASC accreditation visit and were extremely successful in evidencing to the team, why we deserve to be re-accredited. Just as a reminder, this visit occurred because we received our initial accreditation two years ago, and WASC requires a backup visit within two years of the initial accreditation. Yes, it has been two years already since we received initial accreditation! Our entire team from the board of managers to our faculty and every staff person contributed to the successful re-accreditation visit. Dean Frykberg and Dean Brown, led our tremendous faculty and  staff in preparing an accreditation self-study that had over 7,000 pages of evidence. Our accreditation report from the visiting team had a number of outstanding commendations and in particular cited our faculty, Deans and the Board of managers and our CFO. We will attend the WASC conference in June to meet with the full WASC committee and we expect to receive full renewal of accreditation  based upon the WASC team report and their overall recommendation.  Great job team! Thanks Faculty and staff. Read more…

Eavesdropping under California law – Penal code 632

I have always wondered where it says you cannot record a telephone conversation.  It’s California Penal Code section 632(a), called eavesdropping.

CHAPTER 1.5. Invasion of Privacy [630 - 638.55]

632.
(a) A person who, intentionally and without the consent of all parties to a confidential communication, uses an electronic amplifying or recording device to eavesdrop upon or record the confidential communication, whether the communication is carried on among the parties in the presence of one another or by means of a telegraph, telephone, or other device, except a radio, shall be punished by a fine not exceeding two thousand five hundred dollars ($2,500) per violation, or imprisonment in a county jail not exceeding one year, or in the state prison, or by both that fine and imprisonment. . . . .

What is all of that in English?

1.  The conversation must be “confidential” meaning at least one of the parties “desires it to be confined to the parties thereto,” Penal Code section 632(c) which specifically carves out conversations in a public gathering.

2.  The recording of the conversation must be without the consent of all parties to the conversation.  I wonder if the statement you hear while waiting on the phone that “this conversation may be recorded” constitutes consent by all parties.  It must be since it happens so often.

February 2021 filings up slightly

Filings went up slightly in February 2021 from January.  The increase was about 10%.

2021 2020 2019 2018 2017 2016 2015 2014
Jan 1,783 2,828 2,745 2,741 2,839 2,872 3,364 4,704
Feb 1,957 2,781 2,754 2,708 2,795 3,299 3,829 4,574
March 2,736 3,481 3,363 3,782 3,923 4,496 5,430
April 1,669 3,631 3,277 3,209 3,584 4,486 5,364
May 2,080 3,347 3,226 3,384 3,484 3,971 5,500
June 2,257 2,967 2,981 3,252 3,545 3,966 4,386
July 2,415 3,270 3,057 2,953 3,239 3,731 4,701
Aug 2,355 3,274 3,337 3,387 3,543 3,544 4,540
Sept 2,169 2,934 2,772 3,071 3,168 3,493 4,317
Oct 2,210 3,355 3,259 3,170 3,235 3,751 4,554
Nov 1,730 2,636 2,821 3,004 3,025 3,531 3,642
Dec 1,665 2,723 2,419 2,416 2,902 2,718 3,733
Total  3,740 26,895 37,117 35,961 37,262 39,819 44,880 55,445

Total filings for January and February together are still 34% lower than the same two months last year.

Filings by chapter in the Central District of California year to date (two months) are:

Non-Comm’l Commercial Chapter 7 Chapter 13 Chapter 11
3,344 396 3,319 365 56
89% 11% 89% 10% 1%

New local bankruptcy rules re small business chapter 11

LOCAL BANKRUPTCY RULES AMENDMENTS
EFFECTIVE FEBRUARY 1, 2021

The Board of Judges for the United States Bankruptcy Court, Central District of California, approved the following new rules and amendments to the Court’s Local Bankruptcy Rules (LBRs) that become effective February 1, 2021:

Summary of New Local Bankruptcy Rules
LBR LBR Title Purpose of New Rule
LBR 2015-3 PRECONFIRMATION REQUIREMENTS FOR SUBCHAPTER V DEBTORS, DEBTORS IN POSSESSION, AND TRUSTEES Implements Interim Rule 2015’s postpetition, preconfirmation financial reporting duties of the subchapter V debtor.
LBR 3014-1 ELECTION UNDER 11 U.S.C. § 1111(b) BY SECURED CREDITOR IN SUBCHAPTER V CASES Provides a deadline for secured creditors to make an “1111(b) election” in a subchapter V case.
LBR 3020-2 POSTCONFIRMATION REQUIREMENTS IN A SUBCHAPTER V CASE Implements the SBRA’s postconfirmation reporting requirements under either a consensual or nonconsensual plan.
LBR 3022-2 FULL ADMINISTRATION IN A SUBCHAPTER V CASE Implements the postconfirmation administration and closing of the estate under either a consensual or nonconsensual plan confirmed under the SBRA.

LBR LBR Title Type of Amendment
LBR 2015-2 REQUIREMENTS FOR CHAPTER 11 DEBTORS IN POSSESSION, CHAPTER 11 TRUSTEES, AND SUBCHAPTER V TRUSTEES Amended to address continued applicability to chapter 11 cases, while noting that LBR 2015-3 provides more specific rules applicable to subchapter V cases only.
LBR 3003-1 BAR DATE IN CHAPTER 11 CASES Amended to reflect subchapter V bar dates for prepetition claims as well as governmental entities.
LBR 3017-2 CHAPTER 11 DISCLOSURE STATEMENT – APPROVAL IN SMALL BUSINESS CASES AND WHEN REQUIRED IN SUBCHAPTER V CASES Amended to reflect applicability to subchapter V cases where the Court has ordered that §1125 applies.
LBR 3020-1 CHAPTER 11 PLAN CONFIRMATION AND POSTCONFIRMATION REQUIREMENTS Amended to clarify postconfirmation reporting requirements in traditional, non-subchapter V, chapter 11 cases.
LBR 3022-1 FINAL DECREE AND CLOSING A CHAPTER 11 CASE Amended to provide that it is also applicable to subchapter V cases.
LBR 4002-1 DUTIES OF DEBTOR AT MEETING OF CREDITORS Amended to cross-reference new LBR 2015-3 with respect to duties of a subchapter V debtor.
LBR 6004-1 SALE, USE, OR LEASE OF ESTATE PROPERTY Amended to include subchapter V trustee in possession as entity that may seek to sell property of the estate outside of the ordinary course.

The revised LBRs, and a redline summary of the revisions, are available on the Local Bankruptcy Rules web page of the Court’s website www.cacb.uscourts.gov.

KATHLEEN J. CAMPBELL
CLERK OF COURT

To view the entire Public Notice from the Court’s website select the following link: http://www.cacb.uscourts.gov/news

Family law judgments not subject to 10 year renewal requirements

Another thing I didn’t know.

Email and tip of the hat to Richard Heston:

Remember that when dealing with judgments obtained under Sections 523(a)(5) (claims for or in the nature of support) and 523(a)(15) (non-support marital debts) the underlying Family Court judgments are not subject to the renewal requirements otherwise applicable to civil judgments.  Pursuant to Fam.C. § 291(a) all money judgments and orders entered under the Family Code, including judgments for child or spousal support, are enforceable until paid in full or otherwise satisfied, and they are exempt from any requirement that a judgment be renewed. Failure to renew such has no effect on enforceability of the judgment. See Schelb v. Stein, 190 Cal.App.4th 1440, 1447 (2010).

cdcbaa Program on Evidence in Bankruptcy Court, March 20, 2021

EVIDENCE IN BANKRUPTCY COURT’

Register at: https://us02web.zoom.us/webinar/register/1916143113563/WN_Im38ttG0TdqR5cyArFzXMg

March 20, 2021:
Announcements: 10:45 am
Webinar starts: 11:00 am – 1:00 pm PST

Speakers:
Hon. Barry Russell | U.S. Bankruptcy Court – Central District of Calif, Los Angeles Division

M. Jonathan Hayes | Resnik Hayes Moradi LLP

Cost:
FREE | Members
$75 | Non-Members
$50 | Govt/Non-Profit/Co-Sponsor Organization Members Read more…

Small business bankruptcies increased debt ceiling sunsets on March 27, 2021

The SBRA debt limit was $2.7 million, of which 50% had to be business debt.  The CARES Act, which became effective March 27, 2020, increased the debt ceiling to $7.5 million.   That increase will terminate on March 27, 2021 unless Congress takes further action, which most of us are assuming will happen.  But it may not.  Eligible small business debtors should promptly consider whether to take advantage of Subchapter V before the CARES Act modifications expire and the eligibility debt ceiling returns to $2.7 million. Unless the March 27, 2021 deadline is extended by Congress, we expect a sharp increase of Chapter 11 filings under Subchapter V at the end of 2020 through Q1 2021.

UST Quarterly Fees changing as of April 1, 2021

From the UST website:

FEE SCHEDULE FOR CALENDAR QUARTERS BEGINNING

APRIL 1, 2021 THROUGH DECEMBER 31, 2025

The Bankruptcy Administration Improvement Act of 2020, Pub. L. No. 116-325, enacted on January 12, 2021, temporarily amended the calculation of chapter 11 quarterly fees for calendar quarters beginning April 1, 2021 through December 31, 2025. Under this amendment, the quarterly fee payable for a calendar quarter shall be the greater of: (1) 0.4% of disbursements or $250 for each quarter in which disbursements total less than $1,000,000, and (2) 0.8% of disbursements but not more than $250,000 for each quarter in which disbursements total at least $1,000,000. The following table displays the disbursement ranges and quarterly fees under the amended quarterly fee schedule for calendar quarters beginning April 1, 2021 through December 31, 2025.

TOTAL QUARTERLY DISBURSEMENTS QUARTERLY FEE
$0 to $62,624 $250
$62,625 to $999,999 0.4% of quarterly disbursements
$1,000,000 to $31,249,937 0.8% of quarterly disbursements
$31,249,938 or more $250,000

FEE SCHEDULE FOR CALENDAR QUARTERS BEGINNING
JANUARY 1, 2018 THROUGH MARCH 31, 2021 Read more…