Open Access. Powered by Scholars. Published by Universities.®
- Keyword
-
- Bankruptcy (1)
- Budget deficits (1)
- Corporate insolvencies (1)
- Debt relief (1)
- Defined benefit pension plan (1)
-
- Federal bankruptcy (1)
- Financial distress (1)
- GASB statement 68 (1)
- Hybrid cash balance pension plan (1)
- Journal of Legal Studies (1)
- Kentucky Employee Retirement System (1)
- Law (1)
- Public pension plans (1)
- Small business (1)
- State governments (1)
- U.S. Bankruptcy Code (1)
- Underfunded public pension plans (1)
Articles 1 - 3 of 3
Full-Text Articles in Bankruptcy Law
The Case For Public Pension Reform: Early Evidence From Kentucky, Maria O'Brien
The Case For Public Pension Reform: Early Evidence From Kentucky, Maria O'Brien
Faculty Scholarship
Kentucky has managed to effect major changes to some of its pension plans in the face of poor funding ratios that threatened to swamp other budget priorities. At this point it is unclear whether the reforms are deep enough to bring the plans funding levels in line with those of “healthy” states like Wisconsin. It is also unclear whether there is the political will in other jurisdictions to curb costs by moving to defined contribution or hybrid cash balance vehicles. Transparency combined with a fear that pension obligations would soon swamp all other state budget priorities appears to have been …
A Minimalist Approach To State ‘Bankruptcy’, Steven L. Schwarcz
A Minimalist Approach To State ‘Bankruptcy’, Steven L. Schwarcz
Faculty Scholarship
Increasingly finding themselves in financial straitjackets, states have been turning to austerity measures, tax increases, privatization of services, and renegotiation of collective bargaining agreements. Absent a federal government bailout, however, states will also need debt relief if their debt burden becomes so crushing that reasonable efforts at fiscal reform will fail to avoid default. Some advocate providing this relief by, effectively, extending municipal bankruptcy law to states. That approach brings in excess baggage, however, engendering political opposition and constitutional concerns. There is a simpler solution: Enable states to work out their debt problems with their creditors. Although the main obstacle …
Bargaining Around Bankruptcy: Small Business Workouts And State Law, Edward R. Morrison
Bargaining Around Bankruptcy: Small Business Workouts And State Law, Edward R. Morrison
Faculty Scholarship
Federal bankruptcy law is rarely used by distressed small businesses. For every 100 that suspend operations, at most 20 file for bankruptcy. The rest use state law procedures to liquidate or reorganize. This paper documents the importance of these procedures and the conditions under which they are chosen using firm-level data on Chicago-area small businesses. I show that business owners bargain with senior lenders over the resolution of financial distress. Federal bankruptcy law is invoked only when bargaining fails. This tends to occur when there is more than one senior lender or when the debtor has defaulted on senior debt …