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2006

Bankruptcy

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Institution
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Articles 1 - 24 of 24

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Sublicensing From A Distressed Company: Are You Placing Your Future In The Debtor's Hands?, Michelle M. Harner, David A. Beck Nov 2006

Sublicensing From A Distressed Company: Are You Placing Your Future In The Debtor's Hands?, Michelle M. Harner, David A. Beck

Faculty Scholarship

No abstract provided.


Bankruptcy Reform: What's Tax Got To Do With It?, Michelle A. Cecil Oct 2006

Bankruptcy Reform: What's Tax Got To Do With It?, Michelle A. Cecil

Faculty Publications

The article takes a two-pronged approach to the issue. First, it argues that all post-petition appreciation should be taxed to the debtor rather than to the debtor's bankruptcy estate because the debtor enjoys the benefits of the asset's appreciation in value and because, from a tax perspective, the results will be identical irrespective of whether the debtor or the bankruptcy estate is taxed on the asset's post-petition appreciation. Second, the article proposes that the gain accruing before the termination of the bankruptcy proceeding be treated as discharge of indebtedness income so that the debtor can defer recognition ...


Forward: Symposium On Interdisciplinary Perspectives On Bankruptcy Reform, Michelle A. Cecil Oct 2006

Forward: Symposium On Interdisciplinary Perspectives On Bankruptcy Reform, Michelle A. Cecil

Faculty Publications

In 2003, over 1.6 million consumers filed for bankruptcy protection, surpassing the previous record of 1.5 million bankruptcy filings set just one year earlier.1 In an effort to reverse the spiraling upward trend of consumer bankruptcies, and to prevent abusive debtors from using the bankruptcy system to avoid paying their debts,2 in April, 2005, Congress voted overwhelmingly in favor of passing the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA).3 Widely heralded as the most sweeping bankruptcy reform legislation in over a quarter of a century,4 BAPCPA was designed in large part ...


Applying Altman's Z-Score In The Classroom, Tom Arnold, John H. Earl Jr. Jul 2006

Applying Altman's Z-Score In The Classroom, Tom Arnold, John H. Earl Jr.

Finance Faculty Publications

Altman's Z-score is introduced in an Excel framework to produce a quick calculation of the Z-score with actual financial data available through the Internet. The lesson plan developed is easily introduced with topics covering ratio analysis, financial risk, bond rating changes, and bankruptcy. Given the wide use of the Z-score in practice to evaluate credit risk (or bankruptcy risk), the lesson plan produces a skill set that is very marketable.


Killing With Kindness: The Myth Of "Consumer Protection" In The Bankruptcy Abuse And Consumer Protection Act Of 2005, Margaret Romero Apr 2006

Killing With Kindness: The Myth Of "Consumer Protection" In The Bankruptcy Abuse And Consumer Protection Act Of 2005, Margaret Romero

Student Legal Scholarship: Thesis Honors (1996-2008)

The United States Congress considered bankruptcy reform for eight years before George W. Bush signed the Bankruptcy Abuse and Consumer Protection Act of 2005 ("BACPA") into law on April 20, 2005. Congressional proponents alleged that rampant and abusive practices required substantial reform measures to combat a staggering economic crisis that burdened every honest citizen. Bankruptcy reform offered the promise of "greater stability and fairness" in the American financial system. BACPA supporters promised that the massive reform measures were designed to curb abusive practices while protecting innocent consumers. However, despite apparently decent and compassionate intentions, some consumer protection measures may have ...


An Empirical Examination Of The Decision To Invest In Fulfillment Capabilities: A Study Of Internet Retailers, Taylor Randall, Serguei Netessine, Nils Rudi Apr 2006

An Empirical Examination Of The Decision To Invest In Fulfillment Capabilities: A Study Of Internet Retailers, Taylor Randall, Serguei Netessine, Nils Rudi

Operations, Information and Decisions Papers

Internet technology has allowed for a higher degree of decoupling between the information-intensive sales process and the physical process of inventory management than its brick-and-mortar counterpart. As a result, some Internet retailers choose to outsource inventory and back-end operations to focus on the sales/marketing aspects of e-commerce. Nonetheless, many retailers keep fulfillment capabilities in-house. In this paper, we identify and empirically test factors that persuade firms to integrate inventory and fulfillment capabilities with virtual storefronts. Based on the extant literature and previous research in e-commerce, we formulate nine theoretical predictions. We then use data from a sample of over ...


Bapcpa And Commercial Credit: Who (Sic) Do You Trust, David G. Epstein Jan 2006

Bapcpa And Commercial Credit: Who (Sic) Do You Trust, David G. Epstein

Law Faculty Publications

Trying to understand and apply the many different provisions of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) has caused people to yearn for the "good old days." At the National Conference of Bankruptcy Judges' (NCBJ) Annual Meeting in San Antonio in October 2005, there was a lot of talk about the "good old days" and some singing "'bout the good old days" at the NCBJ "Final Night Dinner" by a larger than life (at least as large as Sally Struthers), Wynonna Judd. And this has caused me to remember a daytime television show from my good ...


U.S. Airways, Petrie, Patterson Jan 2006

U.S. Airways, Petrie, Patterson

Chapter 11 Bankruptcy Case Studies

No abstract provided.


Bankruptcy And State Collections: The Case Of The Missing Garnishments, Richard M. Hynes Jan 2006

Bankruptcy And State Collections: The Case Of The Missing Garnishments, Richard M. Hynes

Faculty Publications

Recent bankruptcy reforms were spurred in part by a bankruptcy filing rate that has more than doubled in the last ten years and that has risen by approximately six hundred percent over the last generation. Some attribute this surge in filings to Americans' greater willingness to avoid debts by declaring bankruptcy. Most academics, however, argue that more Americans are forced into bankruptcy by crushing debt burdens and aggressive collections techniques. Surprisingly, the literature has largely ignored data on the use of these collections techniques. This Article examines the use of one of the most important collections tools, garnishment, in two ...


A Semiparametric Model Approach For Financial Bankruptcy Prediction, Maria H. Kim, Paul Yoo Jan 2006

A Semiparametric Model Approach For Financial Bankruptcy Prediction, Maria H. Kim, Paul Yoo

Faculty of Commerce - Papers (Archive)

In this study, we propose a model that achieves both accurate modeling and sustainable model stability for corporate bankruptcy prediction. This model is to model the given samples accurately as well as to respond adequately to the unknown inputs by employing semiparametric approach where parametric model and nonparametric Neural Networks (NNs) are combined. By exploring the structural relationships within the available sample data, the proposed model is assumed to retain the advantages of both parametric and nonparametric models. The proposed model is compared to pure parametric models such as Multivariate Discriminant Analysis (MDA) and Logistic Regression (LR), and pure nonparametric ...


Legislative Messaging And Bankruptcy Law, Lois R. Lupica, Karen Gross, Kathryn R. Heidt Jan 2006

Legislative Messaging And Bankruptcy Law, Lois R. Lupica, Karen Gross, Kathryn R. Heidt

Faculty Publications

This Essay grew out of many three-way conversations and multiple collaborative drafts. We began this conversation at the academic conference in 2003 celebrating the Bankruptcy Code’s upcoming 25th Anniversary. Sadly, we did not have the opportunity to finish either the conversations or to finalize this Essay before Kate Heidt’s untimely death in May 2005. Completed in her absence, this Essay is dedicated to the memory of our close friend and colleague, Professor Kathryn R. Heidt.


International Secured Transactions And Insolvency, Mark J. Sundahl, Susan Jaffe Roberts, Jeff Carruth, Walter Douglas Stuber Jan 2006

International Secured Transactions And Insolvency, Mark J. Sundahl, Susan Jaffe Roberts, Jeff Carruth, Walter Douglas Stuber

Law Faculty Articles and Essays

The following article surveys some of the significant developments in the field of cross-border insolvencies and secured financing during the twelve months prior to December 1, 2005. The most publicized and long-awaited bankruptcy development was the enactment of legislation in the United States to adopt the UNCITRAL framework for the recognition of foreign insolvency proceedings. Even with the adoption of the UNICTRAL framework, American courts continued to render significant decisions under the former law which may, over time, inform practice, under the UNICTRAL provisions. Brazil also enacted significant bankruptcy reforms during 2005. The international law of secured transactions experienced a ...


Debtor Discharge And Creditor Repayment In Chapter 13, Scott F. Norberg, Andrew Velkey Jan 2006

Debtor Discharge And Creditor Repayment In Chapter 13, Scott F. Norberg, Andrew Velkey

Faculty Publications

Consumer bankruptcy filings hit another record high in 1998, with nearly 1.4 million consumers filing for bankruptcy relief. This trend sparked a debate in Congress about means-testing chapter 7 bankruptcy filings. Proponents of reform argued that it would curtail fraud and abuse. Opponents believed that consumer debt was swamping income growth, and that the deregulation of the consumer credit market had led to overgenerous lending and hence to more bankruptcies. This is an empirical study of whether filers for chapter 13 bankruptcy cases are abusing the system, or whether debtors are truly being swamped by debt in excess of ...


Corporate Complicity Claims: Why There Is No Innocent Decison-Maker Exception To Imputing An Officer's Wrongdoing To A Bankrupt Corporation, Jonathan Witmer-Rich Jan 2006

Corporate Complicity Claims: Why There Is No Innocent Decison-Maker Exception To Imputing An Officer's Wrongdoing To A Bankrupt Corporation, Jonathan Witmer-Rich

Law Faculty Articles and Essays

This Article evaluates the innocent decision-maker exception in light of the doctrinal foundations of the in pari delicto defense and the Wagoner rule, general principles of agency law, and the lower court decisions that address these issues. It concludes that the innocent decision-maker exception is a doctrinal error, traceable to the logical misstep of a single lower court whose decision continues to be mistakenly followed. The innocent decision-maker exception is inconsistent with the basic principles of agency law that underlie imputation in the context of in pari delicto and the Wagoner rule. No court of appeals has explicitly addressed the ...


International Insolvency Case Venue In The European Union: The Parmalat And Daisytek Controversies, Samuel Bufford Jan 2006

International Insolvency Case Venue In The European Union: The Parmalat And Daisytek Controversies, Samuel Bufford

Journal Articles

The European Union Insolvency Regulation (the EU Regulation) is a giant step forward in promoting international cooperation among EU countries for cross-border insolvency proceedings. It adopts a modified universalist solution to cross-border proceedings insofar as they are located within the EU. However, experience has shown that it needs improvement to work effectively. A venue battle now rages between courts of several European countries over which country's courts will administer particular cross-border proceedings and how the center of main interest is to be determined for this purpose.

This Article begins with a detailed examination of the two principal cases where ...


Abuse Prevention 2005, James J. White Jan 2006

Abuse Prevention 2005, James J. White

Articles

Today I do not debate the empirical question (what is the cause of the increase in bankruptcy filings?) nor do I address the buried moral question (who deserves the protection of bankruptcy law?). Rather, I speculate about the consequences of 2005 amendments to the Bankruptcy Code and about the reasons it will achieve or fail to achieve the goals of its sponsors. Along the way I hope to learn something about how law changes, or fails to change behavior.


The Totality Of The Circumstances Of The Debtor's Financial Situation In A Post-Means Test World: Trying To Bridge The Wedoff/Culhane & White Divide, John A. E. Pottow Jan 2006

The Totality Of The Circumstances Of The Debtor's Financial Situation In A Post-Means Test World: Trying To Bridge The Wedoff/Culhane & White Divide, John A. E. Pottow

Articles

Bankruptcy Judge Eugene Wedoff and Creighton Law School professors Marianne Culhane and Michaela White engage in a spirited debate over a series of law review articles about the proper scope of motions to dismiss a debtor's petition under section 707(b) of the freshly revised Bankruptcy Code. It is an interesting and provocative dialogue, with both sides advancing their respective positions persuasively. As a result, I find myself in the unfortunate position of wanting to agree with both. Since that is impossible, however, this brief article is my attempt to find a middle ground between their two positions. It ...


Greed And Pride In International Bankruptcy: The Problems Of And Proposed Solutions To 'Local Interests', John A. E. Pottow Jan 2006

Greed And Pride In International Bankruptcy: The Problems Of And Proposed Solutions To 'Local Interests', John A. E. Pottow

Articles

The collapses of Yukos, Parmalat, and other international juggernauts have focused scholarly attention on the failure of multinational enterprises. Even what one might consider "American" companies, such as Chicago-based United Airlines, have made clear in their restructuring plans that their operations have profound effects on the dozens of nations around the globe where they transact business. Government and quasi-government reform efforts to regulate these cross-border insolvencies have abounded, including among others, the UNCITRAL Model Law on Cross-Border Insolvency. UNCITRAL is also building on World Bank and INSOL efforts at promulgating a Legislative Guide for "best practices" bankruptcy codes. Scholars vary ...


Optimizing Consumer Credit Markets And Bankruptcy Policy, Ronald J. Mann Jan 2006

Optimizing Consumer Credit Markets And Bankruptcy Policy, Ronald J. Mann

Faculty Scholarship

This Article explores the relationship between consumer credit markets and bankruptcy policy. In general, I argue that the causative relationships running between borrowing and bankruptcy compel a new strategy for policing the conduct of lenders and borrowers in modern consumer credit markets. The strategy must be sensitive to the role of the credit card in lending markets and must recognize that both issuers and cardholders are well placed to respond to the increased levels of spending and indebtedness. In the latter parts of the Article, I recommend mandatory minimum payment requirements, a tax on distressed credit card debt, and the ...


The Supreme Court, The Solicitor General, And Bankruptcy: Bfp V. Resolution Trust Corporation, Ronald J. Mann Jan 2006

The Supreme Court, The Solicitor General, And Bankruptcy: Bfp V. Resolution Trust Corporation, Ronald J. Mann

Faculty Scholarship

This chapter tells the story behind BFP v. Resolution Trust Corporation. I see BFP as a case that pitted relatively plain statutory language supporting the debtor-in-possession against policy interests supporting a secured creditor. I argue that an important explanation for the Supreme Court's decision to favor policy over the language of the statute was its perception of a need to protect the availability of non-bankruptcy remedies for secured creditors. Accordingly, I situate my discussion of BFP in the context of the role that the federal government has played in the Supreme Court's cases interpreting the Bankruptcy Code. In ...


Bankruptcy Ethics Issues For Solos And Small Firms, Nancy B. Rapoport Jan 2006

Bankruptcy Ethics Issues For Solos And Small Firms, Nancy B. Rapoport

Scholarly Works

This chapter, in Corinne Cooper & Catherine E. Vance's book Attorney Liability in Bankruptcy, walks the reader through some of the traditional ethics issues triggered by representing consumers and small businesses. It also addresses some of the ethics issues that the recent Bankruptcy Amendments (BAPCPA) have created.


Hiding In Plain View: A Neglected Supreme Court Decision Resolves The Debate Over Non-Debtor Releases In Chapter 11 Reorganizations, Joshua M. Silverstein Jan 2006

Hiding In Plain View: A Neglected Supreme Court Decision Resolves The Debate Over Non-Debtor Releases In Chapter 11 Reorganizations, Joshua M. Silverstein

Faculty Scholarship

This article presents a novel resolution of a long-standing circuit split on an issue of critical significance to bankruptcy and tort law: whether bankruptcy courts may extinguish liabilities of parties that have not filed for bankruptcy. Such "non-debtor releases" are similar in effect to a bankruptcy discharge and have become particularly common in both mass tort disputes and general insolvencies adjudicated through the bankruptcy process. In this article, I illustrate how an overlooked Supreme Court decision—United States v. Energy Resources, 495 U.S. 545 (1990)—offers crucial support for the pro-release position. Energy Resources demonstrates that the bankruptcy courts ...


Bankruptcy Reform And The 'Sweat Box' Of Credit Card Debt, Ronald J. Mann Jan 2006

Bankruptcy Reform And The 'Sweat Box' Of Credit Card Debt, Ronald J. Mann

Faculty Scholarship

Those that backed the 2005 bankruptcy reform law argued that it would protect creditors from consumer abuse and lack of financial responsibility. The substantial increase in the number of bankruptcies over the last decade combined with the perception of system-wide abuse apparently convinced legislators from both political parties that the backers had a point. Thus, Congress enacted amendments to the Bankruptcy Code that - if effective - would fundamentally change the core policies underlying the consumer bankruptcy system in this country. The rhetoric surrounding the reform debates pressed the idea that if borrowers had to repay more of their debts, creditors would ...


Optimizing Consumer Credit Markets And Bankruptcy Policy, Ronald J. Mann Jan 2006

Optimizing Consumer Credit Markets And Bankruptcy Policy, Ronald J. Mann

Faculty Scholarship

This article explores the relationship between consumer credit markets and bankruptcy policy. In general, I argue that the causative relationships running between borrowing and bankruptcy compel a new strategy for policing the conduct of lenders and borrowers in modern consumer credit markets. The strategy must be sensitive to the role of the credit card in lending markets and must recognize that both issuers and cardholders are well placed to respond to the increased levels of spending and indebtedness. In the latter parts of the article, I recommend mandatory minimum payment requirements, a tax on distressed credit card debt, and the ...