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Ryan Hardy Analyzes Court’s Decision in In re Thurmon

Spencer Fane attorney Ryan Hardy recently analyzed In Re: Kevin Lynn Thurmon and Susan Jane Thurmon, Debtors in The Show-Me Banker magazine.

Titled “Missouri Bankruptcy Court Holds Debtor Must Be Currently Engaged in Commercial or Business Activities to Be Eligible to Make Subchapter V Election,” the article explains the Bankruptcy Court for the Western District of Missouri’s recent decision. The court “held that debtors who had ceased operation of their business and sold its assets pre-petition were not ‘engaged in commercial or business activities,’ and therefore could not proceed under new subchapter V of Chapter 11.”

Ryan noted that “the Court nonetheless signaled its willingness to confirm the debtors’ subchapter V plan with a modification, although the debtor had never sought approval of or distributed a disclosure statement as required for non-subchapter V Chapter 11 debtors.”

To read the full article, please click here.