Cancellation of Debt Income and Other Strategic Considerations Related to Bankruptcy and Workout of Troubled Loans

A presentation by David J. Schwab and Vasilli D. Russis

This Presentation is Meant to be an Overview of Issues to Consider in the Workout of Troubled Real Estate Loans and not a Dissertation on Tax Law

Judge Learned Hand once noted:

In my own case the words of such an act as the Income Tax, for example, merely dance before my eyes in a meaningless procession: cross-reference to cross- reference, exception upon exception–couched in abstract terms that offer no handle to seize hold of–leave in my mind only a confused sense of some vitally important, but successfully concealed purport, which it is my duty to extract, but which is within my power, if at all, only after the most inordinate expenditure of time.3

Ann M. Tabor, Gitlitz v. Commissioner: Windfall for Shareholders of an Insolvent S Corporation, 46 S.D.L. Rev. 648 (2001) (Footnote: Learned Hand, The Spirit of Liberty: Papers and Addresses of Learned Hand 213 (Irving Dillard ed., 2d ed., 1953)

Read the overview here:

STRATEGIC CONSIDERATIONS RELATED TO BANKRUPTCY AND WORKOUT OF TROUBLED LOANS