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Articles 1 - 8 of 8
Full-Text Articles in Law
A Proposal For Chapter 10: Reorganization For 'Too Big To Fail' Companies, George Kuney, Michael James
A Proposal For Chapter 10: Reorganization For 'Too Big To Fail' Companies, George Kuney, Michael James
Michael C James
The Bankruptcy Code provides tools that are well-suited to addressing and resolving the financial problems faced by the "Big Three" automakers and other "too big to fail" companies ("TBTF Companies"). But Chapter 11 as it presently exists would inevitably impose great harm on vendors and other interrelated businesses resulting in a ripple effect causing cascading business failures and lay-offs. With comparatively minor changes to the Bankruptcy Code, enacted in the form of a streamlined new Chapter 10, however, TBTF Companies could use the powerful tools of the bankruptcy process to remedy their core financial problems without imposing on society unnecessary …
Bankruptcy Law As A Liquidity Provider, Kenneth Ayotte, David Skeel
Bankruptcy Law As A Liquidity Provider, Kenneth Ayotte, David Skeel
Kenneth Ayotte
Since the outset of the recent financial crisis, liquidity problems have been cited as the cause behind the bankruptcies and near bankruptcies of numerous firms, ranging from Bear Stearns and Lehman Brothers in 2008 to Kodak more recently. This paper expands the prevailing normative theory of corporate bankruptcy — the Creditors’ Bargain theory — to include a role for bankruptcy as a provider of liquidity. The Creditors’ Bargain theory argues that bankruptcy law should be limited to solving problems caused by multiple, uncoordinated creditors, but focuses almost exclusively on the problem of creditor runs. We argue that two well-known problems …
Bankruptcy Or Bailouts?, Kenneth Ayotte, David Skeel
Bankruptcy Or Bailouts?, Kenneth Ayotte, David Skeel
Kenneth Ayotte
The usual reaction if one mentions bankruptcy as a mechanism for addressing a financial institution’s default is incredulity. Those who favor the rescue of troubled financial institutions, and even those who prefer that their assets be promptly sold to a healthier institution, treat bankruptcy as anathema. Everyone seems to agree that nothing good can come from bankruptcy. Indeed, the Chapter 11 filing by Lehman Brothers has been singled out by many the primary cause of the severe economic and financial contraction that followed, and proof that bankruptcy is disorderly and ineffective. As a result, ad-hoc rescue lending to avoid bankruptcy …
Florida's Troubled Phosphate Companies: Can Bankruptcy Law Be Used To Relieve Their Obligation To Reclaim The Land?, Mary Jane Angelo
Florida's Troubled Phosphate Companies: Can Bankruptcy Law Be Used To Relieve Their Obligation To Reclaim The Land?, Mary Jane Angelo
Mary Jane Angelo
The conflict that brings us here arises when the earth is disturbed and the environment in which we live is threatened. . . . On the one hand are the corporations who mine phosphate reserves in Florida—their intentions are based on the argument that an ever-shrinking agrarian base in America must have fertilizer to remain effective and productive. On the other hand are the individuals and groups who oppose that mining and their argument is based upon the contention that such mining is too destructive of a unique and very fragile ecosystem. By the year 2000, phosphate companies will have …
When Does Some Federal Interest Require A Different Result?: An Essay On The Use And Misuse Of Butner V. United States, Juliet Moringiello
When Does Some Federal Interest Require A Different Result?: An Essay On The Use And Misuse Of Butner V. United States, Juliet Moringiello
Juliet M Moringiello
Thousands of judges and scholars have relied on the statement in the 1979 Supreme Court opinion in Butner v. United States that “property interests are created and defined by state law...unless some federal interest requires a different result.” Often, they cite to the statement as a policy constraint that elevates state property law over federal bankruptcy law. This Essay, written for the American Bankruptcy Institute – University of Illinois Symposium on Chapter 11 Reform, posits that the Butner rule is not as broadly applicable as commonly believed. To do so, the Essay surveys some notable uses and misuses of the …
Reforming Preference Law, Dalie Jimenez
Reforming Preference Law, Dalie Jimenez
Dalie Jimenez
This article responds to Brook Gotberg's proposal to do away with preference liability in certain Chapter 11 cases and provides empirical evidence of preferential transfers in consumer Chapter 7 cases.
Medical Debt As A Cause Of Consumer Bankruptcy, Daniel Austin
Medical Debt As A Cause Of Consumer Bankruptcy, Daniel Austin
Daniel A. Austin
During his 2009 State of the Union Address, President Obama urged Americans to support healthcare reform, stating “[t]his is a cost that now causes a bankruptcy in America every thirty seconds.” That attention-grabbing statistic was based on a 2009 study, co-authored by now Sen. Elizabeth Warren, which concluded that 62.1% of consumer bankruptcies are medical bankruptcies. The figure has been widely cited by lawmakers, academics, and in the media. Other researchers dispute the study findings, and the issue of medical bankruptcies continues to be a focal point in debates over healthcare policy and bankruptcy law reform.
Several other studies have …
Utilizing Bankruptcy To Reduce Outstanding Tax Debts, T. Fogg, Kenneth Weil
Utilizing Bankruptcy To Reduce Outstanding Tax Debts, T. Fogg, Kenneth Weil
T. Keith Fogg
In general, Congress set out to strike a balance in the bankruptcy code between the need for government entities to collect taxes, the need to promote a fresh start for debtors and the desire to create a relatively balanced playing field for competing creditors. This chapter explains how tax creditors will do well when they quickly collect the debts due to them. They will do much less well if the debts have gotten old. Exceptions to this general rule exist for tax debts secured by a tax lien or debts arising from the debtor's collection of funds on behalf of …