In re Blanchard

No. 19-12440 (2020)

From our private database of 46,000+ case briefs, written and edited by humans—never with AI.

In re Blanchard

United States Bankruptcy Court for the Eastern District of Louisiana
No. 19-12440 (2020)


Andrew and Christine Blanchard (debtors) filed a Chapter 11 bankruptcy petition in September 2019. The Blanchards’ debt included personal guarantees of certain business or commercial loans to separate entities that they controlled or held a substantial interest in. Some of these entities remained in operation, and some did not. In April 2020, the United States Trustee (UST) moved to convert the Blanchards’ case to a Chapter 7 case or, in the alternative, to dismiss the case. A few days later, the Blanchards moved to proceed under the newly adopted Small Business Reorganization Act (SBRA), which created a streamlined and specially tailored Chapter 11 process for qualifying small businesses. The UST opposed the Blanchards’ request because the Blanchards had not met their Chapter 11 deadlines, and the deadlines that would apply under the SBRA had passed; the UST also raised due-process concerns relating to creditors that would be negatively affected by proceeding under the SBRA. In addition, WBL, SPO I, LLC (WBL), a Blanchard creditor (creditor), argued that the Blanchards did not qualify for the SBRA because the separate entities that incurred the relevant loans were not themselves in bankruptcy. That is, WBL noted that the SBRA applied only to a person engaged in commercial or business activities, which WBL contended meant that an SBRA debtor currently had to be engaged in such activities. Moreover, per WBL, an individual qualified for the SBRA only if a separate business entity was in bankruptcy and the individual was an affiliate of the separate legal entity. However, WBL conceded that the Blanchards’ debt did not exceed the SBRA’s limit. The Blanchards, who did not seek (and did not qualify for) affiliate status, disputed WBL’s interpretation of the SBRA. Per the Blanchards, they were entitled to proceed under the SBRA because they had independent status as small-business debtors who engaged in commercial or business activities based on the current and past activities of the relevant separate entities. To address the UST’s due-process concerns, the court allowed any creditors that would be affected by an SBRA proceeding to come forward, but none did. The Blanchards moved to dismiss their case so that they could refile under the SBRA. The UST agreed not to object to the Blanchards’ request.

Rule of Law


Holding and Reasoning (Grabill, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 743,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 743,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,000 briefs, keyed to 986 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 743,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,000 briefs - keyed to 986 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership