MCLE SELF-STUDY ARTICLE TEST YOUR KNOWLEDGE: RECENT DEVELOPMENTS IN INSOLVENCY LAW 2022
Written by Thomas R. Phinney and Paul J. Pascuzzi*
Welcome to the eighth annual edition of our article covering recent developments in bankruptcy law. This article comes from a program we present for the Bankruptcy and Commercial Law Section of the Sacramento County Bar Association. Once again, we invite you to test your knowledge of recent developments in the area of insolvency law. Unless otherwise noted, all references are to the Bankruptcy Code. We provide a summary of the facts, issues, and holdings from a mix of ten recent important and interesting bankruptcy decisions. For MCLE credit, please answer the 20 true/false questions available at the CLA’s website: www. calawyers.org. Good luck!
1. Profit Motive Not Required for Subchapter V Eligibility: NetJets Aviation, Inc. v. RS Air, LLC (In re RS Air, LLC), No. BAP NC-21-1227-BGT, 2022 WL 1288608 (B.A.P. 9th Cir. April 26, 2022).
This case involves the requirements and burden of proof for a debtor to be eligible to file a subchapter V chapter 11 case. Subchapter V is a certain type of chapter 11 case for smaller businesses to attempt to reorganize more quickly and efficiently, and with less stringent requirements, than would be possible in a typical chapter 11 case. Section 1182(1)(A) requires that for a debtor to be eligible for subchapter V it must be "engaged in commercial or business activities."