Law Commons^™

Deciding On An Efficient Involuntary Bankruptcy Filing Petition Rule, Sergio A. Muro

Cornell Law School J.D. Student Research Papers

Bankruptcy law deals with last recourse solutions to extreme financial and balance-sheet problems. Both debtor and his creditors will have incentives to begin an insolvency case balanced with other reasons that will encourage them not to begin it. Consequently legal systems usually tend to concentrate on rules that will spur either group to bring the bankruptcy proceeding when it is adequate. As a result some countries have creditors bringing most of the proceedings (as is the case of the United Kingdom) and others have debtors as the prime figures.

This paper focuses on the creditor side of the equation and …