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Series

SSRN

Columbia Law School

Bankruptcy Law

2015

Articles 1 - 3 of 3

Full-Text Articles in Law

Extraterritorial Avoidance Actions: Lessons From Madoff, Edward R. Morrison Jan 2015

Extraterritorial Avoidance Actions: Lessons From Madoff, Edward R. Morrison

Faculty Scholarship

The Madoff case provided fertile ground for testing boundaries of the U.S. Bankruptcy Code. This paper looks at one boundary-testing dispute that forced the SDNY District Court to assess the extraterritorial reach of rules governing recovery of fraudulent transfers. The trustee for the Madoff estate sought to recover property that had been transferred from Madoff’s Ponzi scheme to offshore feeder funds, which in turn transferred the property to customers located abroad. The SDNY court stopped the trustee. In its view, the trustee was seeking extraterritorial application of Section 550, that the text of this section does not overcome ...


Rules Of Thumb For Intercreditor Agreements, Edward R. Morrison Jan 2015

Rules Of Thumb For Intercreditor Agreements, Edward R. Morrison

Faculty Scholarship

Intercreditor agreements frequently restrict the extent to which subordinated creditors can participate in the bankruptcy process by, for example, contesting liens of senior lenders, objecting to a cash collateral motion, or even exercising the right to vote on a plan of reorganization. Because intercreditor agreements can reorder the bargaining environment in bankruptcy, some judges have been unsure about their enforceability. Other judges have not hesitated to enforce the agreements, at least when they do not restrict the voting rights of subordinated creditors. This essay argues that intercreditor agreements are controversial because they pose a trade-off: they reduce bargaining costs (by ...


Leverage, Default, And Mortality: Evidence From Cancer Diagnoses, Arpit Gupta, Edward R. Morrison, Catherine Fedorenko, Scott Ramsey Jan 2015

Leverage, Default, And Mortality: Evidence From Cancer Diagnoses, Arpit Gupta, Edward R. Morrison, Catherine Fedorenko, Scott Ramsey

Faculty Scholarship

This paper tests whether housing wealth mitigates the effects of health shocks on financial stress and mortality. We link cancer records to mortgage, bankruptcy, foreclosure, and credit report data. We find that cancer diagnoses are financially destabilizing even for households with health insurance, but the effect is driven by households without home equity. Households with equity extract it (by refinancing a mortgage or taking out a second). They are also more likely to accept recommended therapies and have higher post-diagnosis survival rates. Our findings show that housing wealth plays an important role in understanding how individuals buffer idiosyncratic shocks.