Bankruptcy Court Broadly Interprets "Engaged in Business" Requirement for Subchapter V Eligibility • NACTT Academy

Bankruptcy Court Broadly Interprets “Engaged in Business” Requirement for Subchapter V Eligibility

By Lawrence R. Ahern, III, Brown & Ahern (Nashville, TN)

Introduction

The Bankruptcy Court for the District of Colorado ruled recently, in a case styled In re Ikalowych,1 that while eligibility for subchapter V of Chapter 112 requires that 50% of a debtor's debt must arise from commercial or business activities, the debtor was not required to be directly involved with those activities when he filed and elected to be governed by subchapter V, the part of Chapter . . .

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