Dankruptcy: When The Green Runs Out, Marijuana Debtors Have Few Options, 2020 University of Arkansas, Fayetteville
Dankruptcy: When The Green Runs Out, Marijuana Debtors Have Few Options, Jorge J. Rodriguez
Arkansas Law Review
The legalized marijuana industry is lucrative but surrounded with uncertainties. The divergence between state and federal law has pushed this industry into a state of limbo. Furthermore, at the federal level, the lack of enforcing the prohibition has only exacerbated the uncertainty. Historically, the federal government has taken a very relaxed approach and allowed marijuana businesses to operate with minimal interference. As a result, there is a thriving legalized marijuana industry operating throughout the majority of the United States. However, there are many obstacles which plague and threaten the future of this relatively young industry. Of particular importance, and the ...
Tempering Bankruptcy Nondischargability To Promote The Purposes Of Student Loans, 2020 University of California - Davis
Tempering Bankruptcy Nondischargability To Promote The Purposes Of Student Loans, John P. Hunt
SMU Law Review
Student loans, unlike other debts, are not dischargeable in bankruptcy unless the debtor starts a special proceeding and proves that repayment would cause “undue hardship.” This requirement probably accounts for the fact that only a tiny fraction of bankrupt debtors succeed in discharging their student loans. This article is the first to make the case that student- loan nondischargeability interferes with achieving the student-loan pro- grams’ goals and to propose solutions that courts and the Department of Education (the Department) can employ under current law.
The article draws on the legislative history of the student-loan programs to establish that they ...
An Economic Unit Approach To Evaluating The Payment Of Undergraduate Educational Expenses As Fraudulent Tranfers, 2020 Concordia University - Portland
An Economic Unit Approach To Evaluating The Payment Of Undergraduate Educational Expenses As Fraudulent Tranfers, B. Summer Chandler
Trustees in bankruptcy hold the power to initiate lawsuits, relying on theories of fraudulent transfer. These lawsuits are aimed at recovering payments made by the debtor to third parties prior to the filing by the debtor of the debtor’s bankruptcy case. In recent years, several colleges and universities have found themselves the target of fraudulent transfer claims by trustees. These trustees seek to have these colleges and universities disgorge payments of tuition and other educational expenses made by debtor-parents for their children. They argue that, while the payment by the debtor-parent of educational expenses for the debtor’s adult ...
Cryptocurrency Meets Bankruptcy Law: A Call For Creditor Status For Investors In Initial Coin Offerings, 2020 Maurice A. Deane School of Law at Hofstra University
Cryptocurrency Meets Bankruptcy Law: A Call For Creditor Status For Investors In Initial Coin Offerings, Miriam Albert, J. Scott Colesanti
Georgia State University Law Review
In 1973, experts Homer Kripke and John J. Slain published a
seminal study titled The Interface Between Securities Regulation and
Bankruptcy—Allocating the Risk of Illegal Securities Issuance
between Securityholders and the Issuer’s Creditors. That lengthy
analysis, contributed by, respectively, a former Securities and
Exchange Commission official and a professor of law, examined the
status quo and concluded that investors were receiving unfair priority
vis-à-vis creditors in bankruptcy proceedings administered under the
federal Bankruptcy Code. Focusing on the traditional “absolute
priority rule,” the study pointed out that the Securities and Exchange
Commission support for the investor priority was unfounded ...
A No-Contest Discharge For Uncollectible Student Loans, 2020 University of Missouri School of Law
A No-Contest Discharge For Uncollectible Student Loans, Brook E. Gotberg, Matthew Bruckner, Dalie Jimenez, Chrystin Ondersma
Over forty-four million Americans owe more than $1.6 trillion in student loan debt. This debt is nearly impossible to discharge in bankruptcy. Attempting to do so may require costly and contentious litigation with the Department of Education. And because the Department typically fights every case, even initial success can be followed by years of appeals. As a result, few student loan borrowers attempt to discharge their student loan debt in bankruptcy.
In this Article, we call on the Department of Education to develop a set of ten easily ascertainable and verifiable circumstances in which it will not contest a ...
Christianity And Bankruptcy, 2019 University of Pennsylvania Law School
Christianity And Bankruptcy, David A. Skeel Jr.
Faculty Scholarship at Penn Law
Although the term “bankruptcy” is nowhere to be found in the Bible, debt and the consequences of default are a major theme both in the Hebrew Bible and in the New Testament. In Israel, as in the ancient Near East generally, a debtor who defaulted on his obligations was often sold into slavery or servitude. Biblical law moderated the harshness of this system by prohibiting Israelites from charging interest on loans to one another, thus diminishing the risk of default, and by requiring the release of slaves after seven years of service. Jesus alluded to the lending laws at least ...
A New Deal For Debtors: Providing Procedural Justice In Consumer Bankruptcy, 2019 University Maurer School of Law
A New Deal For Debtors: Providing Procedural Justice In Consumer Bankruptcy, Pamela Foohey
Boston College Law Review
Across the criminal and civil justice systems, research regarding procedural justice shows that people’s positive perceptions of legal processes are fundamental to the legal system’s effectiveness and to the rule of law. Approximately one million people file bankruptcy every year, making the consumer bankruptcy system the part of the federal court system with which the public most often comes into contact. Given the importance of bankruptcy to American families and the credit economy, there should exist a rich literature theorizing and investigating how people’s perceptions of consumer bankruptcy’s procedures advance the system’s goals. Instead, bankruptcy ...
A Kafkaesque Process? Ferc Jurisdiction During Chapter 11 Bankruptcy, 2019 Mitchell Hamline School of Law
A Kafkaesque Process? Ferc Jurisdiction During Chapter 11 Bankruptcy, Richard E.B. Dornfeld, Cory J. Marsolek
Mitchell Hamline Law Review
No abstract provided.
Grab The Fire Extinguisher Comparing Uk Schemes Of Arrangement To U.S. Corporate Bankruptcy After Jevic, 2019 U.S. District Court, Northern District of Texas
Grab The Fire Extinguisher Comparing Uk Schemes Of Arrangement To U.S. Corporate Bankruptcy After Jevic, David S. Stevenson
Cleveland State Law Review
Corporations overwhelmed with debt frequently turn to the courts for help to restructure their credit obligations, but some courts are more helpful than others. This is especially true when creditors cannot agree on a particular resolution, let alone when some creditors will not be paid at all. International corporations often have a choice of forum—and substantive insolvency law—based on their legal and physical presence in dozens or even hundreds of countries. The UK and U.S. offer different avenues for using insolvency law to restructure debts without total liquidation, and the American avenue has become more difficult to ...
Nipped In The Bud: How Legal Disparities Create Financial Growth Hurdles In The State-Sanctioned Marijuana Industry And Why Bankruptcy Courts Can Provide A Remedy, Caitlyn Cullen
University of Miami Law Review
A new marijuana industry has emerged in the United States in the wake of state-by-state legalization of marijuana, and entrepreneurs, investors, and other advisory services are increasingly viewing the marijuana industry as an area of legitimate business opportunity. However, potential investors have been hesitant to establish formal relationships with marijuana businesses that operate legitimately in the eyes of the state but in a cloud of legal uncertainty at the federal level because the Controlled Substances Act criminalizes marijuana. This Note identifies two economic consequences of the conflicts of state and federal law and suggests a temporary solution that would allow ...
European Banking Union D: Cross-Border Resolution—Dexia Group, 2019 Yale Program on Financial Stability
European Banking Union D: Cross-Border Resolution—Dexia Group, Rosalind Z. Wiggins, Natalia Tente, Andrew Metrick
Journal of Financial Crises
In September 2008, Dexia Group, SA, the world’s largest provider of public finance, experienced a sudden liquidity crisis. In response, the governments of Belgium, France, and Luxembourg provided the company a capital infusion and credit support. In February 2010, the company adopted a European Union (EU)-approved restructuring plan that required it to scale back its businesses and cease proprietary trading. In June 2011, Dexia withdrew from the government-sponsored credit support program before its expiration date, and in July, the company announced that it had passed an EU stress test. However, just three months later, Dexia wrote down its ...
European Banking Union C: Cross-Border Resolution–Fortis Group, 2019 Yale Program on Financial Stability
European Banking Union C: Cross-Border Resolution–Fortis Group, Rosalind Z. Wiggins, Natalia Tente, Andrew Metrick
Journal of Financial Crises
In August 2007, Fortis Group, Belgium’s largest bank, acquired the Dutch operations of ABN AMRO, becoming the fifth largest bank in Europe. Despite its size and its significant operations in the Benelux countries, Fortis struggled to integrate ABN AMRO. Fortis’s situation worsened with the crash of the US subprime market, which impacted its subprime mortgage portfolio. By July 2008, Fortis’s CEO had stepped down, its stock had lost 70% of its value, and it was on the verge of collapse due to a severe liquidity crisis. The governments of Belgium, Luxembourg, and the Netherlands quickly came together ...
European Banking Union B: The Single Resolution Mechanism, 2019 Yale Program on Financial Stability
European Banking Union B: The Single Resolution Mechanism, Rosalind Z. Wiggins, Michael Wedow, Andrew Metrick
Journal of Financial Crises
The options available to European governments to respond to a multinational bank in financial trouble have been severely limited since each country has its own unique laws and authority applicable to banks operating within its borders. The Bank Recovery & Resolution Directive (BRRD), which was adopted in 2013 and scheduled to go into effect January 2015, harmonizes rules across EU countries for how to restructure and resolve failing banks. However, the directive would maintain the existing system of individual national resolution authorities and resolution funds. To better secure the Eurozone banks and to compliment the Single Supervisory Mechanism, which was enacted ...
European Banking Union A: The Single Supervisory Mechanism, 2019 Yale Program on Financial Stability
European Banking Union A: The Single Supervisory Mechanism, Rosalind Z. Wiggins, Michael Wedow, Andrew Metrick
Journal of Financial Crises
At the peak of the Global Financial Crisis in fall 2008, each of the 27 member states in the European Union (EU) set many of its own banking rules and had its own bank regulators and supervisors. The crisis made the shortcomings of this decentralized approach obvious, and since its formation in January 2011, the European Banking Authority (EBA) has been developing a “Single Rulebook” that will harmonize banking rules across the EU countries. In June 2012, European leaders went even further, committing to a banking union that would better coordinate supervision of banks in the then 18-country Eurozone. A ...
Bankruptcy's Cathedral: Property Rules, Liability Rules, And Distress, 2019 Northwestern Pritzker School of Law
Bankruptcy's Cathedral: Property Rules, Liability Rules, And Distress, Vincent S.J. Buccola
Northwestern University Law Review
What justifies corporate bankruptcy law in the modern economy? For forty years, economically oriented theorists have rationalized bankruptcy as an antidote to potential coordination failures associated with a company’s financial distress. But the sophistication of financial contracting and the depth of capital markets today threaten the practical plausibility, if not the theoretical soundness, of the conventional model. This Article sets out a framework for assessing bankruptcy law that accounts for changes in the technology of corporate finance. It then applies the framework to three important artifacts of contemporary American bankruptcy practice, pointing toward a radically streamlined vision of the ...
Unlimited Liability For Banks: Deposits As Fraudulent Transfers, 2019 St. Mary's University
Unlimited Liability For Banks: Deposits As Fraudulent Transfers, Katherine Zampas
St. Mary's Law Journal
One of a trustee’s most valuable resources in bankruptcy proceedings is his avoidance powers. A trustee is charged with the duty to recover and recapture any property wrongfully removed from the estate by way of fraudulent transfer or preference. In some cases, a trustee has attempted to treat a debtor’s deposit into a bank account as a transfer, rendering it subject to his avoidance powers. Such a result will leave banks collaterally responsible as a transferee for a debtor’s conduct despite their lack of culpability and control over the funds.
The definition of transfer within the Bankruptcy ...
Financing Failure: Bankruptcy Lending, Credit Market Conditions, And The Financial Crisis, 2019 Boston Univeristy School of Law
Financing Failure: Bankruptcy Lending, Credit Market Conditions, And The Financial Crisis, Frederick Tung
When contemplating Chapter 11, firms often need to seek financing for their continuing operations in bankruptcy. Because such financing would otherwise be hard to find, the Bankruptcy Code authorizes debtors to offer sweeteners to debtor-in-possession (DIP) lenders. These inducements can be effective in attracting financing, but because they are thought to come at the expense of other stakeholders, the Code permits these inducements only if no less generous a package would have been sufficient to obtain the loan.
Anecdotal evidence suggests that the use of certain controversial inducements — I focus on roll-ups and milestones — skyrocketed in recent years, leading critics ...
Cacs And Doorknobs, 2019 Georgetown University Law Center
Cacs And Doorknobs, Anna Gelpern, Jeromin Zettelmeyer
Georgetown Law Faculty Publications and Other Works
In response to debt crises, policy makers often feature Collective Action Clauses (CACs) in sovereign bonds among the pillars of international financial architecture. However, the content of official pronouncements about CACs suggests that CACs are more like doorknobs: a process tool with limited impact on the incidence or ultimate outcome of a debt restructuring. We ask whether CACs are welfare improving and, if so, whether they are pillars or doorknobs. The history of CACs in corporate debt suggests that CACs can be good, bad or unimportant depending on their vulnerability to abuse and the available alternatives, including bankruptcy and debt ...
Third-Party Bankruptcy Releases: An Analysis Of Consent Through The Lenses Of Due Process And Contract Law, 2019 Fordham University School of Law
Third-Party Bankruptcy Releases: An Analysis Of Consent Through The Lenses Of Due Process And Contract Law, Dorothy Coco
Fordham Law Review
Bankruptcy courts disagree on the use of third-party releases in Chapter 11 bankruptcy plans, the different factors that circuit courts consider when deciding whether to approve a third-party release, and the impact of the various consent definitions on whether a release is or should be binding on the creditor. Affirmative consent, “deemed consent,” and silence are important elements in this discussion. Both contract law and due process provide lenses to evaluate consent definitions to determine whether nondebtor third-party releases should bind certain creditor groups. This Note proposes a solution that follows an affirmative consent approach to protect against due process ...
Bankruptcy’S Class Act: Class Proofs Of Claim In Chapter 11, 2019 Penn State Dickinson Law
Bankruptcy’S Class Act: Class Proofs Of Claim In Chapter 11, Tori Remington
Dickinson Law Review
When a business files for protection under Chapter 11 bankruptcy, it must begin to pay off its debt by reorganizing or liquidating its assets. Oftentimes, both processes include terminating employees to reduce the business’s expenditures. As a result of these terminations, former employees might file a “class proof of claim” against the business to preserve any claims of unpaid wages or violations of federal law.
Whether a group may file a class proof of claim against a debtor in bankruptcy remains unclear. The Tenth Circuit has rejected the class proof of claim in bankruptcy. The remaining circuit courts that ...