Bankruptcy Law Commons^™

Iflas And Chapter 11: Classical Islamic Law And Modern Bankruptcy, Abed Awad, Robert E. Michael

Elisabeth Haub School of Law Faculty Publications

There is no question that the orderly development of Islamic finance will require finding ways to amalgamate the classical Islamic law of bankruptcy with the needs of the modern Islamic finance industry. The unreasonable reliance on ever-expanding opportunities has disappeared along with the global credit markets. It is therefore inescapable that loss scenarios must be dealt with. That in turn means effective bankruptcy laws. We hope this article will help foster the effort.

Trusts And Estates - Spendthrift Trusts And The "Happenstance Of Bankruptcy" Rule, Jonathan R. Shulan

University of Arkansas at Little Rock Law Review

No abstract provided.

Race, Educational Loans & Bankruptcy, Abbye Atkinson

Michigan Journal of Race and Law

This Article reports new data from the 2007 Consumer Bankruptcy Project revealing that college graduates and specifically White graduates are less likely to file for bankruptcy than their counterparts without a college degree. Although these observations suggest that a college degree helps graduates to weather the setbacks that sometimes lead to financial hardship as measured by bankruptcy, they also indicate that a college degree may not help everyone equally. African American college graduates are equally likely to file for bankruptcy as African Americans without a college degree. Thus, a college education may not confer the same protective benefit against financial …

The Rise In Elder Bankruptcy Filings And Failure Of U.S. Bankruptcy Law, John A. E. Pottow

Law & Economics Working Papers

Recent empirical legal scholarship on the consumer bankruptcy system has uncovered a marked rise in the proportion of elder Americans filing for relief under the Bankruptcy Code. But these studies have not probed the reasons behind that rise, an omission this Article seeks to address. Professor John Pottow and colleagues recently assembled the new dataset of the Consumer Bankruptcy Project (CBP), the largest national sample of consumer debtors in this country, which he uses to explore the sources of elder bankruptcy. The findings are both striking and ominous. While multiple factors, such as health problems and medical debts, contribute to …

Bankruptcy, James D. Walker Jr., Amber Nickell

Mercer Law Review

I. INTRODUCTION

In 2009 the country entered into a significant recession, but bankruptcy law-perhaps surprisingly-remained relatively static, at least in the Eleventh Circuit. On a national level, things were a bit more interesting; the Chrysler bankruptcy was much discussed in the media and there was a renewed interest in allowing individuals to modify primary residence mortgages in bankruptcy. Still, even the collapse of the housing market could not move Congress to amend the Bankruptcy Code. Despite the action on a national level, in the Eleventh Circuit it was business as usual with a year that can best be described as …

The Federal Rules Of Bankruptcy Procedure In Reorganization Cases: Do They Have A Constitutional Dimension?, David G. Carlson

Articles

The article examines the implications of the Supreme Court's decision in United Student Aid Funds, Inc. v. Espinosa, which significantly impacts bankruptcy law by establishing that due process in bankruptcy reorganization cases is governed by the minimalist standard set forth in Mullane v. Central Hanover Bank & Trust Co. This ruling undermines the constitutional dimension of the Bankruptcy Rules, strengthens the finality of reorganization plans under res judicata, and affects the discharge of student loans without an adversary proceeding. The decision highlights the tension between due process rights of creditors and the finality of bankruptcy court rulings, while also reshaping …

Why Banks Are Not Allowed In Bankruptcy, Richard M. Hynes, Steven D. Walt

Washington and Lee Law Review

Unlike most other countries, the United States uses different Procedures to resolve insolvent banks and nonbank firms. The Bankruptcy Code divides control over nonbank firms among the various claimants, and a judge supervises the resolution process. By contrast, the FDIC acts as the receiver for an insolvent bank and has almost complete con trol. Other claimants can sue the FDIC, but they cannot obtain injunctive relief and their damages are limited to the amount that they would have received in liquidation. The FDIC has acted as the receiver of insolvent banks since the Great Depression, and the concentration of power …

Tragedy On The Descent: The Ascent And Fall Of Eddie Bauer, Austin Fleming, Bryan C. Hathorn

Chapter 11 Bankruptcy Case Studies

For many entrepreneurs, bankruptcy is the unfortunate end of what began as a business dream. The birth of a business is an exciting time for the entrepreneur, but its death is often a painful process—both for the company's owners and its creditors. Those businesses that choose not to reorganize close their doors forever. However, reorganization can often salvage a business enterprise that is a good one but is impaired by debt, crisis, or simple bad luck.

The goals of the reorganization process are clear—the idea is to produce a viable business enterprise but one not necessarily owned by the original …

Appalachian Oil Company, Inc.: A Company's Journey After Running Out Of Gas, Allison S. Jackson, Raymond G. Lewallen Jr., Jennifer T. Mcginn

Chapter 11 Bankruptcy Case Studies

When Appalachian Oil Company, Inc. filed for Chapter 11 protection on February 9, 2009, it marked the end of an era for a company with more than eighty-six years of experience in the petroleum products industry. The company’s failure was attributable to a couple of factors, including the worst financial crisis since the Great Depression and a parasitic parent company. The combination of a lack of operating income and access to credit rendered the company insolvent and unable to continue its operations. Appalachian Oil Company, Inc.’s journey through Chapter 11, however, was unique in that it never reemerged; rather, the …

Active Ride Shop : Chapter 11 Bankruptcy, Matt Fink, Philip Meyer

Chapter 11 Bankruptcy Case Studies

In 2008, hundreds of people waited in the rain for the grand opening of Active Ride Shop’s new Chico Hills location, its twenty-sixth store and its biggest opening event yet. In the same year, Active was awarded the Surf Industry Men’s Retailer of the Year Award, yet less than a year later the company would file for chapter 11 protection. This paper will explore Active’s financial downturn and resulting chapter 11 case, inform the reader about the workings of the chapter 11 process, and impart an understanding of how the process works in the context of a non-plan sale of …

Death Of A (Used Car) Salesman: An Examination Of The Incredible Auto Sales, Llc Bankruptcy, Alicia Teubert, Melissa Carraso

Chapter 11 Bankruptcy Case Studies

At first glance, the Incredible Auto Sales, LLC (“Incredible Auto”) Chapter 11 bankruptcy appeared fairly standard. A once prospering business found itself in the red trying to keep its inventory stocked, pay its bills, and remain a going concern. On paper, the prospects of reorganization seemed promising. It had nearly $2 million worth of inventory. It had nearly $200,000 worth of machinery, fixtures, parts, and supplies. Plus, there was a market for its product because Incredible Auto was the only Kia MotorsAmerica (“KIA”) dealership in a 250-300 mile radius. However, the Incredible Auto on paper was not the same Incredible …

In Re Crabtree & Evelyn: "Almost Washed Up", Kristina Chuck, Lin Ye

Chapter 11 Bankruptcy Case Studies

Crabtree and Evelyn (“C&E”) started in 1972 as an outlet of fine soaps from all over the globe. The name was derived from the crabapple tree and John Evelyn who was a Renaissance Englishman who had works on the conservation of forests and timber. Over the almost forty years since then it has expanded what it has to offer from fine soaps to a variety of other products including “personal care products and related accessories, fragrances, comestibles (i.e., food products including cookies, teas and jams), products for the home and gift arrangements.”

It also “manufactures and distributes more …

Towards A Concensus On The Treatment Of Multinational Enterprise Groups In Insolvency, Irit Mevorach

Cardozo Journal of International and Comparative Law

Insolvency of multinational enterprise groups is a complex and difficult process, which is partly why it has, thus far, failed to receive comprehensive treatment in legal regimes, despite its major importance. However, with UNCITRAL Working Group V recently taking this topic on board, this situation may change. The deliberations have now reached the final stages; it is therefore the aim of this paper to evaluate whether the Working Group's current proposals are normatively attractive and whether they are feasible (in terms of being embraced by legal regimes). The paper focuses on the deliberations regarding the international aspects of enterprise groups …

Assessing The Chrysler Bankruptcy, Mark J. Roe, David Skeel

Michigan Law Review

Chrysler entered and exited bankruptcy in forty-two days, making it one of the fastest major industrial bankruptcies in memory. It entered as a company widely thought to be ripe for liquidation if left on its own, obtained massive funding from the United States Treasury, and exited via a pseudo-sale of its main assets to a new government-funded entity. The unevenness of the compensation to prior creditors raised concerns in capital markets, which we evaluate here. We conclude that the Chrysler bankruptcy cannot be understood as complying with good bankruptcy practice, that it resurrected discredited practices long thought interred in the …

The Case Against "Bad Faith" Dismissals Of Bankruptcy Petitions Under 11 U.S.C. § 707(A), Pamela C. Tsang

American University Law Review

No abstract provided.

Caveat Lessor: U.S. Aircraft Financiers Beware: 11 U.S.C. § 1110 Expectations May Not Be Met In Cross-Border Insolvencies, Kevin Gaunt

Brigham Young University International Law & Management Review

No abstract provided.

Trusts Versus Corporations: An Empirical Analysis Of Competing Organizational Forms, A. Joseph Warburton

College of Law - Faculty Scholarship

This paper studies the effects of organizational form on managerial behavior and firm performance, from an empirical perspective. Managers of trusts are subject to stricter fiduciary responsibilities than managers of corporations. This paper examines the ramifications empirically, by exploiting data generated by a change in British regulations in the 1990s that allowed mutual funds to organize as either a trust or a corporation. I find evidence that trust law is effective in curtailing opportunistic behavior, as trust managers charge significantly lower fees than their observationally equivalent corporate counterparts. Trust managers also incur lower risk. However, evidence suggests that trust managers …

Bankruptcy Federalism: A Doctrine Askew, Margaret Howard

Scholarly Articles

No abstract provided.

Simon Transportation Services, Inc., Will Holloway, Eliot Kerner, J. Paul Singleton

Chapter 11 Bankruptcy Case Studies

No abstract provided.

Unveiling The Mystery, History, And Problems Associated With The Jurisdictional Limitations Of Bankruptcy Courts Over Personal Injury Tort And Wrongful Death Claims, Ishaq Kundawala

McGeorge Law Review

No abstract provided.

The Complications Of Fla. Stat. Section 222.25(4). Does Florida's Wildcard Exemption Allow Married Debtors To Double Dip, Rubina K. Shaldjian

St. Thomas Law Review

Bankruptcy courts in every Florida district have addressed how the new wildcard exemption fits into the Florida exemption scheme. Part II of this paper outlines the relevant cases and explains the reasoning behind their differences. While not all of the cases directly address whether a married debtor exempting real property under tenancy by the entirety can also claim the additional $4,000 wildcard exemption, the analyses they contain are germane to the issue. Generally, debtors who do not affirmatively claim the homestead exemption are entitled to the wildcard exemption if they do not receive the benefit of constitutional homestead. Part III …

Virtual Territoriality, Edward J. Janger

Faculty Scholarship

No abstract provided.

Ideas, Interests And Institutions And The History Of Canadian Bankruptcy Law 1867-1880, Thomas G. W. Telfer

Law Publications

Michael Trebilcock's scholarship has long recognized the importance of ideas, interests, and institutions in shaping policy. Taking the same analytical approach that Michael Trebilcock and Ninette Kelley use in their ground-breaking book on the history of Canadian immigration, which focuses on economic interests, contested ideas, and institutions, this article examines the Canadian historical experience to gain an understanding of the ideas, interests, and institutions that have been influential in shaping the evolution of Canadian bankruptcy law. Specifically, the article addresses the rise of Canadian bankruptcy legislation in the early post-Confederation period and its ultimate repeal in 1880. Bankruptcy law represented …

The Appeal Of Direct Appeal – Use Of The New 28 U.S.C. § 158(D)(2), Laura B. Bartell

Law Faculty Research Publications

Prior to the amendments enacted in the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA), a decision of a federal bankruptcy judge could be appealed in one of two ways. First, a litigant could appeal a final judgment, order or decree (and certain interlocutory orders and decrees) to the district court for the judicial district in which the bankruptcy judge sits. Second, if the judicial council of the circuit in which the bankruptcy judge was serving had established a bankruptcy appellate panel (BAP) under 28 U.S.C. § 158(6)(1), and the district judges for the district in which the …

Virtual Territoriality, Edward J. Janger

Faculty Scholarship

No abstract provided.

The Principle Of Consumer Utility: A Contemporary Theory Of The Bankruptcy Discharge, 58 University Of Kansas Law Review 101 (2010), Michael D. Sousa

Sturm College of Law: Faculty Scholarship

No abstract provided.

Does An Economic Crisis Merit A Prima Facie Finding Of "Exigent Circumstances" Or Other Emergency Relief? The Impact Of The Credit Counseling Provision Of Bapcpa Upon Distressed Homeowners In A Severe National Economic Downturn, 44 J. Marshall L. Rev. 129 (2010), Gloria J. Liddell, Pearson Liddell Jr., Michael J. Highfield

UIC Law Review

No abstract provided.

A Reappraisal Of Attorneys' Fees In Bankruptcy, Michelle A. Cecil

Faculty Publications

This Article attempts to create a new method for approaching the priority of attorneys’ fees in bankruptcy. It criticizes Lamie for not going far enough toward resolving the attorneys’ fees issue, and proposes a statutory amendment to the Bankruptcy Code that will harmonize the interests of both creditors and debtors who are seeking bankruptcy protection during these difficult economic times.

Collective Bargaining Agreements In Corporate Reorganizations, Andrew B. Dawson

Articles

Congress enacted § 1113 to the Bankruptcy Code in 1984 in order to establish a standard for the rejection of Collective Bargaining Agreements. But the statute's ambiguous language has caused a split between the Second and Third Circuits, and has precipitated a lengthy academic debate largely centered on the interpretation of one word: "necessary." This debate has focused on proper statutory interpretation as well as deeper concerns regarding the policy goals behind the Bankruptcy Code. The present study reports data that indicate that the different interpretations are irrelevant in practice. No matter how "necessary" is defined, the result is always …

Calling All Debtors, Want To Defraud Your Creditors? Here Is How: The Tenancy By The Entirety Loophole And The Nullification Of Section 522(O), (P), And (Q) Of The 2005 Bankruptcy Amendments, Leigh J. Francis

University of Miami Business Law Review

No abstract provided.