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Structured dismissal refers to a bankruptcy court dismissal order containing terms and conditions that are in addition to, or which modify, the provisions of Section 349(b) of the Bankruptcy Code. Bankruptcy courts continue to approve structured dismissals that do not violate Czyzewski v. Jevic Holding Corp., 580 U.S. 451, 468-69 (2017). Check out this practice note for a discussion of the basis for structured dismissal and provisions that are typically included in the order.
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DID YOU KNOW? Under ancient Roman law, if a debtor’s assets were insufficient to pay all creditors, the debtor’s “creditors could dismember and distribute a debtor’s body to the creditors in proportion to the amount of debts owed each.” Collier on Bankruptcy P 20.01. For information on the current state of the law (which does not allow for dismemberment), see Bankruptcy Practice Fundamentals Resource Kit.
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