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Emory Bankruptcy Developments Journal

Authors

Kaylynn Webb

Abstract

Section 363 sales are increasingly used by debtors who wish to sell substantially all of their assets instead of attempting to restructure their estate through the chapter 11 reorganization process. Following a § 363 sale, debtors most commonly utilize one of the following three options to close their case: (1) request confirmation of a liquidation plan; (2) convert the chapter 11 case to a chapter 7 case; or (3) request a dismissal of the case. In In re Jevic, however, the Third Circuit closed the case by utilizing a fourth option: a structured dismissal, a type of relief not explicitly provided for in the Bankruptcy Code. Notably, the court confirmed the dismissal even though its provisions violated the Code's priority scheme. This Comment argues that structured dismissals are permissible under the Code, but they cannot deviate from the priority scheme.

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