Some debtors are taking advantage of a Texas fraudulent transfer law that allows a company to transfer its debt to a Texas entity, which subsequently files for bankruptcy, and its assets to non-debtor entities, protecting the assets and eliminating the debt. What can creditors do about it?
If a debtor is a single-member LLC that is treated as a disregarded entity for tax purposes, does the debtor need to file a tax return to comply with 11 U.S.C. § 521(j). If the debtor hires an accountant to prepare and file a tax return for the debtor’s single-member owner due to the debtor’s disregarded entity status, can the bankruptcy estate compensate the accountant?
Senator Elizabeth Warren recently introduced a bill that would dramatically reshape the private equity industry and create new tools and protections for creditors.