► In This Issue:

• The Absolute Priority Rule Should Not Apply to Individual Chapter 11 Debtors
• New and Improved! ABI’s Committee Website has Moved

The Absolute Priority Rule Should Not Apply to Individual Chapter 11 Debtors

Jeffery J. Sattler Schafer & Weiner, PLLC Bloomfield Hills, Mich.

Individual debtors have the right to retain and use pre-petition property to reorganize under chapter 11 without first getting creditors’ consent or proposing to pay them off — at least according to the Bankruptcy Code. 11 U.S.C. § 1129(b)(2)(B)(ii) expressly spares individual chapter 11 debtors from the absolute priority rule when they propose in their plans to retain property “included in the estate under § 1115.” Under 11 U.S.C. § 1115(a), “property of the estate includes, in addition to the property specified in section 541 — all property of the kind specified in section 541 that the debtor obtains after the commencement of the case but before the case is closed, dismissed, or converted ... and earnings from services performed by the debtor after the commencement of the case but before the case is closed, dismissed, or converted.”   Read More

New Ethics Webinar Open for Registration: Chapter 11 Commission Recommendations on Professional Fees and Expenses

Any reform of current chapter 11 practice must account for the prevailing criticism that fees and costs are too high, and do it in a way that focuses on aligning incentives with case efficiency. This panel will discuss recommended reforms that provide for more effective oversight, as well as alternative fee structures consistent with professionals’ ethical obligations under the Code of Professional Responsibility. Walter W. Theus, Jr. of the Executive Office for U.S. Trustees in Columbia, S.C. will join in on the discussion with our remaining speakers: William A. Brandt, Jr. of Development Specialists, Inc. in New York; James T. Markus of Markus Williams Young & Zimmermann, LLC in Denver; and Deborah D. Williamson of Dykema Cox Smith in San Antonio.

Register today to join the Ethics & Professional Compensation and Business Reorganization committees on Wednesday, July 8th, at noon ET for this practical webinar.

New and Improved! ABI’s Committee Website has Moved

You may have noticed a few changes to the committee site over the last week, including a new location. The committees' webpages have now been integrated into the main ABI website. To access these new pages, simply visit abi.org, hover over the "Membership" tab, and click on "Committees." Here, you will be able to access newsletter articles, recent recordings, announcements, listserve activity and contact information for your leadership team.

Not sure of what committees you are a member? Update your profile, select the "Committees" tab and use the check boxes to update your status. While you're here, take a few moments to update your full preferences, including CLE and bar information, contact information, title, and more. Uploading a professional photo is also a great way to make yourself more visible in the directory. Not only will your photo be included in the directory, but ABI staff will also have it available for use with any future article or speaking bylines.

Have comments, questions or concerns? Email us through our new support system: support@abi.org.