The Slap Seen Around the World—Does Chris Rock Have a Workers’ Comp Claim?

During this year’s edition of the Academy Awards, one of the most viral and famous moments in modern popular culture occurred. While presenting an award at last month’s show in California, comedian Chris Rock made a joke at the expense of audience member and actress Jada Pinkett Smith. Taking offense to the crack aimed at his wife, Will Smith (you know who he is) walked on stage and proceeded to slap the mess out of Chris Rock in the face. (It looked very real and sounded like it really hurt!) While many have offered differing opinions on what happened and why, one question remains unanswered: Does Chris Rock have a valid workers’ compensation claim for his injuries? *

Conditions must be met

In Alabama, to establish a valid claim for workers’ compensation, certain conditions must exist to allow an injured employee to receive benefits. These conditions require the employee to show:

1. They worked for an employer whose business is covered by the law.
2. The injury resulted from an accident.
3. The accident arose out of and in the course of the employment.
4. Proper notice of the accident was given to the employer. ^[1]

If these elements are present, a valid workers’ compensation claim exists, and benefits might be available.

Employee or contractor?

The 1st issue Rock would face if he decided to file a claim would be to show that he worked for the Academy of Motion Picture Arts and Sciences (the academy): the organization behind the Oscars. For this analysis, he must be an employee and not an independent contractor to qualify for workers’ comp benefits. This will not be a difficult point to prove for Rock, as the Oscars hired him as a presenter who came onstage to present an award for the night for Best Documentary (Summer of Soul ultimately won this award). Although he had a limited role that evening, let’s assume Rock will be able to prove that he was an employee of the academy during the Oscars.

Was the attack work-related or personal?

If Rock can prove he worked for the academy, he still needs to show that the injury resulted from an accident that arose out of and in the course of the employment. This situation is analogous to when a 3rd party comes onto the job site and attacks an employee—who is injured from the attack. This issue to be decided is whether a work-related incident provoked the attack or if this was unrelated to anything dealing with the business but just happened to occur on the business property. Hard to say here, but we will give it a go…

The only way Rock could make a valid claim would be to show that the attack was related to his job and carried out while performing his work duties. Smith and Pinkett were seated in the audience, not far from where Rock was presenting on stage. Clearly, he was performing his work duties. However, the other issue—related to his job—is where the argument for workers’ comp benefits likely fails.

This situation occurred solely because of a tasteless quip by Rock towards Pinkett Smith. This appeared to be personal in nature—between Rock and Smith—and not due to Rock’s employment. This joke garnered a reaction within Smith that, while hard to justify, pushed him on stage to slap Rock. Observing Smith’s actions, any reasonable person would be able to say the injury occurred intentionally because of the slap. The slap was an anomaly that had never happened before at the Oscars, and in no way could the academy or Rock foresee this event in the regular course of business.

Can Chris Rock sue?

Rock likely will not have a valid workers’ comp claim against the academy. However, while it is highly unlikely he would do so, Rock could sue Smith in a 3rd-party case for personal injuries and related damages. In some states, Rock could also sue the employer for failing to provide a safe workplace. Criminal charges could also be brought against Smith. (OF NOTE: Smith resigned his academy membership on April 1, 2022, facing a potential suspension or expulsion. The academy then banned him from attending its events for 10 years, effective April 8.)

If you are hurt on the job due to an accident, 3rd-party violence or unsafe working conditions, seek legal counsel, as you may be entitled to workers’ compensation or other benefits. As we have since 1967, the Nomberg Law Firm will continue to protect the legal rights of our clients—those who are hurt on the job while working for Alabama employers. If you have been injured on the job and want to learn about your rights, please consider contacting the Nomberg Law Firm. Our office number is 205-930-6900. Bernard D. Nomberg has been a lawyer for more than 25 years. Bernard has earned an AV rating from Martindale-Hubbell’s peer-review rating. In 2021, Bernard was named a Super Lawyer for the 9th year in a row.

---

^[1] https://labor.alabama.gov/wc/benefits.aspx

* Yes, we are taking some liberties here for this discussion. Given annually by the Academy of Motion Picture Arts and Sciences (the academy), the Oscars are an international recognition of excellence in cinematic achievements, as assessed by the academy’s voting membership. The academy, based in Beverly Hills, CA, is a 501c6 non-profit organization with hundreds of employees and volunteers. For this exercise, we are taking the position that Rock was employed by the academy and Smith was an invited guest for the evening’s event. Lastly, let’s really play make believe and move the show to Alabama, where all of this took place!

The post The Slap Seen Around the World—Does Chris Rock Have a Workers’ Comp Claim? appeared first on The Nomberg Law Firm.

from The Nomberg Law Firm https://nomberglaw.com/blog/work-injury/workers-comp-for-chris-rock/

What Happens After My Workers’ Compensation Claim Has Been Resolved?

Workers’ compensation claims can sometimes be a confusing process that leaves many asking what to do once it is all over. Typically, these claims resolve after the injured worker has finished medical care and is released back to work. Once this occurs, the injured worker and their lawyer work toward settling the claim or trying the case in court. Either way, the work comp claim usually ends, but what does this mean?  To understand what to do once a claim has been resolved, it is important to look at what it means for a claim to be over.

Resolution of a claim

An Alabama workers’ compensation claim is typically resolved either through a negotiated settlement or a trial. Once either of these situations is reached, your lawyer has completed their representation of you, but it does not necessarily mean your case is over. Several things go through the mind of the injured worker during this time of transition. Often medical care can still be ongoing. Hopefully, the injured worker has returned to employment in some capacity. Although the lawyer’s job has concluded, there are some things your lawyer should explain that will help you from that point forward. Here are a few things to keep in mind.

What happens after the settlement or court judgment?

After a court judgment or settlement occurs, it is important for the injured party to continue to monitor their medical symptoms, if any, and to receive the prescribed treatment. It is equally important to follow your doctor’s instructions such as taking certain medications and avoiding restricted activities. When the worker can return to work, depending on the workplace restrictions assigned by the work comp doctor, the employer will assess if they have an opening for the worker to return to the same employment. However, in some situations, the injured employee will have resigned or have been terminated from that employment.  In Alabama, there is no guarantee to return to the same job. Alabama is an at-will employment state, so the worker has very little control over this situation. Your lawyer should be able to explain how the law works for your employment situation.

Constant and clear communication is key!

For an injured worker to have a smooth transition after the case is over, the keys for the injured worker are to keep a clear understanding of work restrictions assigned by the doctor and know the expectations of the employer. Constant and clear communication with both is so important. If you have questions about work restrictions or what is expected at work, you must talk with them! If you still cannot get those answers, contact your lawyer who should be able to get those answers.

If you are hurt on the job due to unsafe working conditions, seek legal counsel, as you may be entitled to workers’ compensation or other benefits. As we have since 1967, we will continue to protect the legal rights of our clients – those who are hurt on the job while working for Alabama employers.

Bernard D. Nomberg has been a lawyer for more than 25 years. Bernard has earned an AV rating from Martindale-Hubbell’s peer-review rating. In 2021, Bernard was named a Super Lawyer for the 9th year in a row.

If you have been injured on the job and want to learn your rights, please consider contacting the Nomberg Law Firm.

from The Nomberg Law Firm https://nomberglaw.com/blog/workers-compensation/workers-comp-claim-resolved/

What Happens After My Workers’ Compensation Claim Has Been Resolved?

Workers’ compensation claims can sometimes be a confusing process that leaves many asking what to do once it is all over. Typically, these claims resolve after the injured worker has finished medical care and is released back to work. Once this occurs, the injured worker and their lawyer work toward settling the claim or trying the case in court. Either way, the work comp claim usually ends, but what does this mean?  To understand what to do once a claim has been resolved, it is important to look at what it means for a claim to be over.

Resolution of a claim

An Alabama workers’ compensation claim is typically resolved either through a negotiated settlement or a trial. Once either of these situations is reached, your lawyer has completed their representation of you, but it does not necessarily mean your case is over. Several things go through the mind of the injured worker during this time of transition. Often medical care can still be ongoing. Hopefully, the injured worker has returned to employment in some capacity. Although the lawyer’s job has concluded, there are some things your lawyer should explain that will help you from that point forward. Here are a few things to keep in mind.

What happens after the settlement or court judgment?

After a court judgment or settlement occurs, it is important for the injured party to continue to monitor their medical symptoms, if any, and to receive the prescribed treatment. It is equally important to follow your doctor’s instructions such as taking certain medications and avoiding restricted activities. When the worker can return to work, depending on the workplace restrictions assigned by the work comp doctor, the employer will assess if they have an opening for the worker to return to the same employment. However, in some situations, the injured employee will have resigned or have been terminated from that employment.  In Alabama, there is no guarantee to return to the same job. Alabama is an at-will employment state, so the worker has very little control over this situation. Your lawyer should be able to explain how the law works for your employment situation.

Constant and clear communication is key!

For an injured worker to have a smooth transition after the case is over, the keys for the injured worker are to keep a clear understanding of work restrictions assigned by the doctor and know the expectations of the employer. Constant and clear communication with both is so important. If you have questions about work restrictions or what is expected at work, you must talk with them! If you still cannot get those answers, contact your lawyer who should be able to get those answers.

If you are hurt on the job due to unsafe working conditions, seek legal counsel, as you may be entitled to workers’ compensation or other benefits. As we have since 1967, we will continue to protect the legal rights of our clients – those who are hurt on the job while working for Alabama employers.

Bernard D. Nomberg has been a lawyer for more than 25 years. Bernard has earned an AV rating from Martindale-Hubbell’s peer-review rating. In 2021, Bernard was named a Super Lawyer for the 9th year in a row.

If you have been injured on the job and want to learn your rights, please consider contacting the Nomberg Law Firm.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://nomberglaw.com/blog/workers-compensation/workers-comp-claim-resolved/

Workers’ Compensation Claims in the Metaverse Workplace

The working world is an ever-evolving landscape.

While brick and mortar offices will likely never go away completely, working remotely or virtually are here now and coming on strong. During the pandemic, the remote workplace became much more the norm for many reasons. Just about any business you can think of (except maybe healthcare and food services) now have some version of remote working.

What has also evolved during the last several years is the virtual workspace—also known as the “metaverse.”

What is the metaverse?

Remember the 1960s animated Hanna-Barbera show, The Jetsons?

Such a cool concept that was decades ahead of its day.

The Jestons’ world was a precursor to the birth of the metaverse. People and dogs flying around in a virtual world, communicating on screens and meeting up in all types of novel places.

Alternatively, remember the SimCity video series where you build your virtual world?

The metaverse is something like that.

The metaverse is a persistent virtual world where people can work, play and shop from anywhere using a virtual reality headset, augmented reality glasses, a phone or any other compatible device. These virtual spaces allow you to create and explore with other people who are not in the same physical space as you. In the metaverse, you will theoretically be able to hang out with friends, work, play, learn, shop, create and more.

Early legal claims in the metaverse

Increasingly, more and more segments of society and the working world are headed to the metaverse. Banking giants, Visa, Facebook and many other leading companies are already doing business in the metaverse. There is even one New Jersey law firm that has a metaverse personal injury law office!

By doing business in the metaverse, it will naturally lead to employees conducting business there, and as a result, legal claims will surely arise. There are many employment-related laws yet to be decided or even addressed in this field.

It seems that so far no one has decided what legal framework should apply to a decentralized digital workspace in which workers may be physically or geographically disconnected from each other and the company they work for.

For instance, claims have already been reported dealing with sexual harassment, sexual abuse and racist abuse. These claims are just beginning. Unfortunately, the metaverse is the wild west right now as everything is new to those jumping into the space.

How can there be work comp claims in a virtual workplace?

Excellent question — one we’ve been pondering as well.

Typically, there are 2 types of workers’ comp injury claims: physical and mental. While this article will not be able to address all questions concerning this topic, we will do our best here to point out what we believe will be those types of claims.

Physical injuries in the metaverse workplace

When a person is working virtually in the metaverse, they are likely wearing virtual headsets or glasses. We cannot foresee virtual “physical” injuries being compensable, but if this does become reality, we will be the first to report back here. For now, we will concentrate on actual physical injuries to the injured employee.

If a person working from home or a remote location has an accident or trauma while wearing the headset or glasses and this causes a physical injury, they might have a worker’s comp claim to pursue. For example, vision or hearing loss, or other physical injuries could be actionable claims. Additionally, there could be a third party claim against the manufacturer of the headset or glasses if the device malfunctioned causing injury.

Of course, the injured party would still need to prove legal and medical causation for a successful claim. Another consideration for these claims are venue and jurisdiction. Those issues might be determined by the physical location of the employment at the time of the accident. However, there are also virtual world or internet jurisdiction considerations yet to be addressed.

While more employees are working remotely than ever before, proving an on the job accident will still require the injured worker to prove that the accident occurred in the course of and arose out of the employment, regardless of the location of the work accident.

Mental injuries in a virtual workplace

Many states, including our home state of Alabama, don’t recognize mental injury claims without a physical injury claim. Several progressive states do allow for mental only work comp claims.

Just like in the physical world, witnessing certain traumas while on the job could be actionable. Post-traumatic stress disorder (PTSD), depression, anxiety and other related mental claims might be actionable in those states for a metaverse workplace claim.

The future of workers’ compensation and virtual workspaces

Stay tuned for more on this topic in the upcoming months!

In the meantime, if you are hurt on the job—in the real or virtual world—due to unsafe working conditions, seek legal counsel immediately as you may be entitled to workers’ compensation or other benefits.

As we have since 1967, Nomberg Law will continue to protect the legal rights of our clients—those who are hurt on the job while working for Alabama employers. If you have been injured on the job and want to learn your rights, please consider contacting us to schedule your free consultation.

Bernard D. Nomberg has been a lawyer for more than 25 years and he has earned an AV Preeminent rating from Martindale-Hubbell’s peer-review rating. In 2021, Bernard was named a Super Lawyer for the 9th year in a row.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/work-injury/workers-comp-metaverse/

5 Do’s and Don’ts of Filing an Alabama Workers’ Compensation Claim

To have a successful workers’ compensation claim in Alabama, there are certain things for the injured worker to consider. Once a person is injured on the job, all of life’s stresses ramp WAY up—health, finances, employment, family communications, etc.

From the beginning, the most important thing to know is to be informed and knowledgeable about how to handle certain situations. This will make your claim run more smoothly and ensure a better result.

1. DO act quickly

Reporting your accident and injury to your employer in a timely manner is of the utmost importance. One of the most common mistakes during the process of a workers’ compensation claim is failing to report your accident or injury in a timely manner.

In the state of Alabama, the injured worker is required to orally report the accident to their employer within 5 days of the injury, or in writing within 90 days of the accident.

(Source: Alabama Code 25-5-1, et seq.)

Generally, an employer is required to submit the First Report of Injury within 15 days after the notice of the occurrence of the injury to the State of Alabama. Failing to report your accident and injury to your employer within the allotted time could result in losing your benefits eligibility.

2. DON’T leave out or add details

While not every detail might help your case, leaving out or adding certain details when reporting to your employer could hurt you. It’s very important to tell the truth about everything you remember when reporting your case.

When relaying your case to insurance companies, lawyers or doctors, being able to tell a detailed and accurate story of the event will help your claim progress efficiently. Be consistent about what you tell them! Although rare, failing to tell an accurate and honest story could result in workers’ compensation fraud.

On the other hand, reporting the accident to your employer is not the time to downplay your injuries. If you are not fully honest with your employer or your lawyer, the process of your workers’ compensation claim becomes much harder and might even take away potential benefits.

3. DO follow medical treatment

Once you are prescribed medical treatment from your doctor, you need to follow their instructions. This includes attending all medical and therapy appointments. If you miss these appointments, the insurance company or the employer will typically attempt to cut off all benefits for failure to comply with medical care. If you need to reschedule, notify the medical office as soon as practical.

Following your doctor’s prescribed care is usually the best course of action; however, in some circumstances, you do have the right to a second opinion paid for by the insurance carrier. Every situation is different. Consult with a lawyer experienced in these matters to guide your decision-making.

4. DON’T take part of work outside of your restrictions

Typically, employers will have a return-to-work program or a modified duty program to help ease the stress of coming back to work. These programs help the employee return to the workplace even if they cannot handle the job duties of their pre-injury job.

If your doctor issues a return to work order and you participate in one such program, make sure it falls within the guidelines ordered by your work comp approved physician. Although these programs can be beneficial, working outside of the scope of the program could cause you physical harm and suspend any progress you have made in your recovery.

5. DO hire a lawyer who is experienced in these matters

Throughout this process, it’s essential to have a good lawyer with experience and expertise of workers’ compensation claims. Avoid an attorney who doesn’t specialize in workers’ compensation claims. While you can educate yourself on important points of the process, a knowledgeable lawyer will help your claim substantially. It is important to hire a law firm with detailed experience regarding workers’ compensation issues in Alabama.

Do your research online, ask around and interview the lawyers you think would be a good fit for your case. The sooner you hire the right lawyer, the better they will be able to protect your legal rights!

If you are hurt on the job due to unsafe working conditions, you may be entitled to workers’ compensation or other benefits. As we have since 1967, Nomberg Law Firm will continue to protect the legal rights of our clients—those who are hurt on the job while working for Alabama employers.

Bernard D. Nomberg has been a lawyer for more than 25 years, and he has earned an AV rating from Martindale-Hubbell’s peer-review rating. In 2021, Bernard was named a Super Lawyer for the 9th year in a row.

If you were injured on the job and want to learn your rights in Alabama, consider contacting our firm for your free consultation.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/work-injury/alabama-workers-comp-tips/

Who is Involved in the Workers’ Compensation Industrial Complex?

*Thanks to our friend and colleague Annemarie Pantazis from North Carolina for coining the phrase “Workers’ Compensation Industrial Complex.” We think it fits!

In most Alabama workers’ compensation claims, there are many different individuals and parties who have important roles during the life of the claim. Some have more important roles than others.

To get a better understanding of who these people are, we are outlining the basic roles of each character in the claim.

Who are the parties?

What are their roles and interests?

There may be a few others involved, but this should be a fairly comprehensive list.

Employee

The employee is the person who is injured on the job and making a claim for workers’ compensation benefits.

Employer

The employer is the business entity that hired the employee who was injured on the job.

Administrator or carrier

Third-party administrator/workers’ compensation carrier is the organization that carries the insurance coverage on behalf of the employer. They have the responsibility of investigating the claim to determine whether benefits will be paid.

Case nurse/case manager

The case nurse is hired by the insurance carrier to facilitate the medical care appointments of the injured employee.

Initial treating physician

Initial treating physician (or sometimes called “Gatekeeper”) is typically paid by the insurance carrier to examine and diagnose what injuries were sustained by the injured employee in the workplace accident or exposure.

Specialist

The specialist is sometimes utilized in work comp cases when a particular body part is injured and requires specialized medical care.

Authorized treating physician (ATP)

The ATP is the approved medical provider for the injured employee.

Primary care physician (PCP)

The PCP is the injured employee’s personal doctor who usually is not approved by the insurance carrier to provide medical care relating to the work comp claim.

Radiologist

A radiologist is sometimes called upon to take diagnostic films such as X-rays, MRI’s or CT scans to help diagnose particular injuries.

Panel

The Panel of Four choice is a list of potential new authorized treating physicians that the injured employee can choose from that is authorized to provide medical care by the workers’ comp insurer.

Utilization review doctor

Utilization review doctor is asked by the insurance carrier to review the proposed medical care being offered to the injured employee. Their decision whether to agree or disagree on medical care impacts the employees’ rights.

Physical therapist

A physical therapist is brought into the workers’ comp process when the authorized treating physician believes that conservative care pre or post-surgery is the best medical option for the injured employee.

Pain management doctor

The pain management doctor treats the injured employee when the current authorized treating physician believes that pain management is the best medical care for the injured worker.

Transportation services

Transportation services are utilized when the injured worker does not have their own method of transportation. The use of transportation services must be approved beforehand by the insurance carrier before it may be utilized by the injured worker.

Private investigator

A private investigator is usually hired by the insurance carrier or the employer to do surveillance on the injured worker during the time the injured worker is away from work due to injury.

Vocational expert

A vocational expert can be hired by either the employer/insurance carrier or the lawyer for the injured worker to determine whether a vocational loss is part of the damages for the injured worker in their workers’ comp claim.

Functional capacity evaluation therapist

A functional capacity evaluation therapist is typically hired by the authorized treating physician at the end of the healing phase to determine the functional ability and limitations of the injured worker before they return to the workplace.

Pharmacy suppliers

Third-party pharmacy suppliers mail medicine to the injured worker usually when the injured worker cannot physically pick up their medicine at a brick-and-mortar pharmacy.

Plaintiff’s attorney

The plaintiff’s attorney is the lawyer who represents the injured employee in the workers’ compensation matter.

Defense attorney

The defense attorney is the lawyer who represents the employer and/or the insurance company that is providing the workers‘ compensation insurance coverage for the employer in the workers’ compensation matter.

Ombudsman

Alabama’s State Ombudsman is often utilized to mediate disputed work comp claims between the parties. They have similar but limited authority to a Circuit Judge in handling these matters.

Circuit Court Judge

Circuit Court Judge will try disputed workers’ compensation claims as well as have best interest hearings to finalize settlements.

When to hire an Alabama work injury attorney

If you or a loved one were hurt on the job due to unsafe working conditions, it’s important to seek legal counsel as you may be entitled to workers’ compensation or other benefits. Since 1967, Nomberg Law has protected the legal rights of our clients—those who are hurt on the job while working for Alabama employers.

Bernard D. Nomberg has been a lawyer for more than 25 years. Bernard has earned an AV rating from Martindale-Hubbell’s peer-review rating. In 2021, Bernard was named a Super Lawyer for the 9th year in a row.

When you are ready to learn your rights, contact the Nomberg Law Firm to schedule your free consultation.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/work-injury/workers-comp-industrial-complex/

Is a Subchapter V Chapter 11 Bankruptcy Case Right For You?

In February 2020, the Small Business Reorganization Act (SBRA) went into effect, opening up a new avenue for small businesses to seek relief under the U.S. bankruptcy laws in a more streamlined approach than the current process for large Chapter 11 cases. This new section of Chapter 11 is called Subchapter 5 (or Subchapter V).

Basically, Subchapter V provides debtors with an opportunity to reorganize more quickly and typically at a reduced cost—no more U.S. Trustee or Bankruptcy Administrator quarterly fees and no more Unsecured Creditors Committees to add to the administrative expenses.

Debtors are required to file a plan of reorganization within 90 days of the petition date and only a Subchapter V debtor can propose a plan. However, perhaps the most important difference in a Subchapter V case compared to a regular Chapter 11 case is that the debtor’s owner or owners may keep their equity in the business under a confirmed plan.

Usually, in a standard Chapter 11 bankruptcy case, the debtor must propose a plan that does not violate the absolute priority rule. This means that the owners cannot keep their equity in the company unless they propose a plan that will pay 100% of the debt owed to its creditors. Because 100% cases are rare in Chapter 11, it stands to reason that business owners who want to keep their interest in the company might shy away from Chapter 11.

Subchapter V introduces a way for corporations to reorganize while the shareholders or corporate members continue to control their voting and economic interests in the company.

Who is eligible for Subchapter V?

There are 3 basic eligibility requirements for Subchapter V:

1. Debt limit

When the SBRA went into effect, businesses with approximately $2.7 million in debts, or less, were permitted to take advantage of this new facet of the Bankruptcy Code. However, in response to COVID, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was signed into law, increasing the debt limits for Subchapter V cases up to $7.5 million.

More importantly, the $7.5 million cap does not include debts owed to insiders. So, shareholder loans to the company can be removed from the calculation for eligibility purposes.

2. Engaged in commercial or business activity

The debtor must be engaged in commercial or business activity. However, there is no requirement that the debtor remain engaged in the commercial or business activity post-petition. So, the company can cease operating and seek to liquidate assets to pay creditors or the individual owners may be eligible to file a Subchapter V case personally, as long as 50% of the pre-petition debt is attributable to business debt.

3. No single asset real estate

The only excluded activity for the small business debtor is operating “single asset real estate”. So, an apartment building or shopping center owner would probably be excluded from filing under Subchapter V.

What are the benefits of a Subchapter V case?

No disclosure statement

In standard Chapter 11 cases, a disclosure statement is required which is often costly to prepare and time consuming. Under Subchapter V, no disclosure statement is required. The plan should include a brief history of the business operations, a liquidation analysis and future disposable income projections to support feasibility of the plan.

Subchapter V trustee

A Subchapter V trustee is appointed to your case to help facilitate a consensual plan of reorganization. The trustee is not tasked with investigating the debtor and they do not have the avoidance powers of a Chapter 7 trustee. The role of the trustee is to supervise and monitor your case while participating in the development and confirmation of a plan.

Mortgage cram-down

Subchapter V enables an individual debtor to cram-down debt on homes they mortgaged to help fund their business. An individual who qualifies as a small business debtor can modify the mortgage on his or her principal residence, provided that the mortgage loan was not used to acquire the real property but was used primarily in connection with the business.

Cram-down confirmation

A Subchapter V debtor can propose a plan that is not accepted by any creditors. This is known as a “non-consensual plan.” Normally, in Chapter 11, at least 1 impaired class of creditors must accept the plan for it to be approved. In Subchapter V, as long as the plan does not discriminate unfairly, and is “fair and equitable” with respect to each impaired class that has not accepted it, the plan may still be confirmed.

What is “fair and equitable”? The debtor must commit all of its “projected disposable income” or property of equivalent value to make payments under the plan for 3-5 years. Debtor must demonstrate a “reasonable likelihood” that it will be able to make all payments under the plan and the plan must provide “appropriate remedies,” which may include the liquidation of nonexempt assets to protect creditors if the debtor fails to make plan payments.

If a non-consensual plan is confirmed, the trustee makes disbursements to creditors unless the court orders or plan provides otherwise. The debtor obtains a discharge after payments are completed in 3-5 years.

Why consult a Chapter 11 bankruptcy attorney?

If you are struggling to pay your debts and concerned about the future welfare for you and your family, it is important that you seek the advice of an experienced Birmingham Chapter 11 bankruptcy lawyer to ensure that your assets are protected and the debts you seek to eliminate are dischargeable.

Steven D. Altmann has been a lawyer for more than 25 years. He has earned an AV rating from Martindale-Hubbell’s peer-review rating and was recently named a Super Lawyer and Top Attorney by Birmingham Magazine in the area of Bankruptcy Law.

At The Nomberg Law Firm, our attorneys have been assisting consumers and business owners with bankruptcy matters for over 25 years. If you are considering filing for bankruptcy, please consider contacting us to schedule your free consultation.

from The Nomberg Law Firm – Birmingham Workers' Compensation & Personal Injury Lawyers https://www.nomberglaw.com/blog/bankruptcy/chapter-11-subchapter-v/