Bankruptcy Law Commons^™

Desperation Finance: Merchant Cash Advances In Bankruptcy And Beyond, Kara Bruce

Emory Bankruptcy Developments Journal

Over the last several years, Merchant Cash Advances (“MCAs”) have risen in prominence as a form of short-term financing for distressed small businesses. MCA transactions are distinct from most small-business lending because they are not structured as loans at all. Rather, in exchange for a lump sum of cash, the merchant purports to sell to the funder an unidentified percentage of its future receipts or receivables. This structure allows funders to sidestep the application of lending regulations and usury protections, but it strains the foundations of commercial law and generates a host of interpretive challenges.

Bankruptcy, district, and circuit courts …

Gendered Outcomes In Student Loan Bankruptcy, Jason Iuliano

Emory Bankruptcy Developments Journal

Women are winning more student loan bankruptcy cases than men, a notable reversal that challenges what we know about gender and legal outcomes. Drawing on hand-coded data from over 1,300 adversary proceedings spanning 2007 to 2023, this Article documents a sharp post-2022 shift. Women now succeed in 89% of cases compared to 82% for men.

The puzzle is that financial metrics cannot explain this gap. Men and women who file these cases look indistinguishable on paper: similar debt loads, comparable assets, and equivalent incomes. Legal representation explains part of the story. Women are slightly more likely to hire attorneys, and …

Holding The Debtor’S Fresh Start Hostage: Bankruptcy Courts Incorrectly Interpret Ransom V. Fia Card Services To Deny Debtors A Car Ownership Expense Deduction, Creola Johnson

Emory Bankruptcy Developments Journal

With the passage of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Congress adopted for the first time a standardized income-based test for measuring an individual debtor’s “disposable income,” which is the amount a debtor must pay to unsecured creditors in a chapter 13 proceeding. Under the means test, debtors calculate their disposable income by deducting from income various standard expenses established by the Internal Revenue Service. One of those standard expenses is a vehicle ownership expense, which debtors can deduct if they have auto loan or lease payments. 

This Article is about bankruptcy courts who …

Acceptance Remarks For The 2026 Distinguished Service Award For Lifetime Achievement: Reflections On Journey, Learning And Paying It Forward, Jack Butler

Emory Bankruptcy Developments Journal

No abstract provided.

Rethinking Priority Rules In Insolvency, Anthony J. Casey, Aurelio Gurrea-Martinez

Emory Bankruptcy Developments Journal

No abstract provided.

Specialization And The Permanence Of Federal Bankruptcy Law, Rafael I. Pardo

Scholarship@WashULaw

Traditional historical accounts posit that federal bankruptcy specialization in the United States first developed under the system established by the Bankruptcy Act of 1898. That view assumes that the structural and temporal conditions necessary to foster specialization did not exist under the nation’s earlier federal bankruptcy systems—those created by the Bankruptcy Acts of 1800, 1841, and 1867. This Article theorizes that federal bankruptcy specialization very likely occurred under the pre-1898 systems and marshals evidence to that effect, primarily focusing on the Bankruptcy Act of 1841 (the 1841 Act). That statute marked a critical turning point in federal bankruptcy law, shifting …

Whose Month Is It? Stub Rent Under §§ 365(D)(3) And 503(B)(1), Shukhrat Muratov

Bankruptcy Research Library

(Excerpt)

Courts are divided on whether landlords are entitled to immediate payment of this rent obligation under 11 U.S.C. § 365(d)(3) or must seek recovery through administrative expense claims under 11 U.S.C. § 503(b)(1). The majority of circuit courts, including the Third, Sixth, and Seventh Circuits, follow the billing date approach, holding that rent obligations arise when due under the lease, meaning that rent due on the first of the month arises entirely pre-petition if the bankruptcy filing occurs later in the month. Under this approach, landlords are not entitled to prompt payment of stub rent under § 365(d)(3). They …

Dischargeability Of Student Loan Debt In Bankruptcy Cases, Dean Van Noy

Bankruptcy Research Library

(Excerpt)

Student loan debt represents one of the largest categories of consumer debt in the United States. Currently, statistics show that there is $1.8 trillion in outstanding student-loan debt owed by approximately 42.5 – 45.8 million debtors. This statistic can be attributed to the fact that the cost of higher education has increased significantly. Department of Education data shows that average tuition prices have more than doubled at colleges and universities around the country over the last three decades. As a direct consequence of this continuously increasing cost of tuition, many debtors have struggled to pay back their student-loan debt, …

Corporate Structuring, Ip Holding Companies & Bankruptcy, Ava Sheftick

Bankruptcy Research Library

(Excerpt)

There are various ways in which the founders of a company may structure their business. While a key focus of corporate planning is how to maximize revenue and operate efficiently, minimizing the risk associated with financial distress is an equally important consideration. A corporation’s structure is made during a time of stability, but it must account for the ultimate financial distress—bankruptcy. Asset allocation is a critical step in the planning stage of a business enterprise, especially when considering creditors the company is going to take on. Companies’ intellectual property ("IP") may be highly valuable assets that must be considered …

Receiverships V. Bankruptcy As A Secured Creditor, Benjamin Nicholas

Bankruptcy Research Library

(Excerpt)

Since the COVID-19 pandemic of 2020, the Commercial Real Estate (CRE) Market, which is the fourth-largest asset market in the US, has faced high uncertainty.  Many workers were either unemployed or working from home, and many consumers were forced to shop online instead of visiting traditional brick-and-mortar storefronts. These market shifts significantly impacted Commercial Real Estate Companies (CRECs), as high vacancy rates were observed in corporate offices, and many retailers struggled to attract customers to their stores.

Although five years have passed since the pandemic, many CRECs are still struggling to recover from COVID-19’s lasting impact on the economy. …

Batting Around Section 363: Sports Franchise Sales, League Consent, And The Boundaries Of Bankruptcy, Katelyn Pantano

Bankruptcy Research Library

(Excerpt)

The question presented is whether a bankruptcy court may authorize the sale of a professional sports franchise without league consent, and whether bankruptcy courts should permit such sales as a matter of policy.

The client, The New York Bets (“the Bets”), is a professional baseball franchise experiencing financial distress and is considering filing for Chapter 11 bankruptcy to facilitate a sale to a new owner. The MLB’s governing documents require league approval, a three-quarters vote of all club owners, for any ownership transfer. The client is now considering Chapter 11 bankruptcy to avoid this approval process and instead have …

Treatment Of Assignment Of Rents In Bankruptcy Under New York Law, James Agoglia

Bankruptcy Research Library

(Excerpt)

Assignments of rents are a common feature of commercial real estate financing in New York. In connection with a mortgage or other secured loan, a borrower that owns income-producing property typically grants the lender an assignment of rents as additional security, entitling the lender to rental income generated by leases at the property upon the borrower’s default. These assignments are intended to protect the lender’s interest by providing an alternative source of repayment and by limiting the borrower’s ability to divert rental income during periods of financial distress.

Disputes concerning assignments of rents often arise when a borrower defaults …

Priority Of Warn Act Claims In Bankruptcy And Rights Of Independent Contractors, Colin Hanlon

Bankruptcy Research Library

(Excerpt)

The Bankruptcy Code establishes a tiered priority system for the payment of unsecured claims, governing the order of distribution when there are insufficient assets to pay all creditors in full. The priority system is fundamental to the operation of the Bankruptcy Code because in most bankruptcy cases, the debtor lacks adequate assets to fully pay all creditors. The Bankruptcy Code grants fourth-level priority up to $17,150 per individual for “wages, salaries, or commissions, including vacation, severance, and sick leave pay earned by an individual.” To receive priority treatment, wages must be earned within 180 days before either the petition …

Fraudulent Transfers And Sovereign Immunity, David G. Carlson

Articles

The article argues that the Supreme Court's decision in United States v. Miller was wrongly decided because it failed to recognize that sovereign immunity is waivable and does not protect the government when it trespasses upon preexisting property rights. The analysis contends that fraudulent transfer claims are quasi in rem actions, meaning the sovereign is subject to the incidental procedures of bankruptcy once enmeshed in such proceedings.

Dancing Around Bankruptcy: Using Texas Two-Steps To Efficiently Handle Mass Tort Liability, John Debbie

Chicago-Kent Law Review

No abstract provided.

The Equity Dead Zones: Legal Intersectionality Failure Points In Chapter 13 Bankruptcy, Tearria N. Simmons

The Guardianship Journal

Legal intersectionality failure points describe the systemic fractures that occur where overlapping legal, social, and economic inequalities converge, potentially producing compounded barriers to relief. Each failure point marks a site of marginalization. In what ways do individuals already recognized as vulnerable in Chapter 13 bankruptcy face a heightened risk when multiple forms of disadvantage intersect? When these intersections combine in mutually reinforcing ways—racial, economic, and relational disparities colliding with structural deficiencies in family, property, and bankruptcy law—does it result in pronounced negative outcomes, and, if so, what are those outcomes? Within this convergence, could there be a space where compounded …

Pembuktian Sederhana Dalam Proses Kepailitan Terhadap Perusahaan Pengembang Pasca Surat Edaran Mahkamah Agung Nomor 3 Tahun 2023, Maya Iswandi

Jurnal Hukum & Pembangunan

Abstract

After the issuance of Sema No. 3/2023, there were various pros and cons to its implementation. This is because the sema has limited and in quotes has protected development companies from bankruptcy proceedings. Sema No. 3/2023 provides immunity to development companies from bankruptcy because they are deemed not to meet the simple proof that must be met in the bankruptcy process. This provision seems to deny the judicial system that should determine the evidence in a case. This certainly causes degradation of legal certainty and consumer protection. Therefore, this research will discuss simple proof in development companies after the …

Greenhat’S Greenlight To The Cftc: The Case For A Jurisdictional Shift Of Financial Transmission Rights From The Federal Energy Regulatory Commission To The Commodity Futures Trading Commission, Timothy K. Shaw Ii

DePaul Business & Commercial Law Journal

Regional Transmission Organizations and Independent System Operators are a relatively new platform to buy and sell wholesale electricity and transmission service of that electricity. These groundbreaking organizations have been around since 1996 after the Federal Energy Regulatory Commission (“FERC”) issued Order 888. FERC regulates the physical electricity wholesale sale and transmission service market managed by a Regional Transmission Organization (“RTO”) or Independent System Operator (“ISO”),through its Federal Power Act mandate. Many RTOs and ISOs offer a product called a Financial Transmission Right (“FTR”). Traditionally, FTRs assist the holder by providing price certainty, or a hedge, in the capacity market. This …

Choosing The Best Entity For Investments Trading After Understanding The Tax Limitations And Restrictions, Ray A. Knight, Joseph Lakatos

DePaul Business & Commercial Law Journal

The trading of various securities is subject to market rules. However, when securities trading is completed within a business entity, the entity is subject to tax limitations and restrictions. The tax benefits cannot be the dominant purpose for the entity structure; economic substance including profit motive and business purpose for each transaction must be able to be shown.

The trading of investment securities must be housed in the right entity to gain the best economic results as well as to minimize the tax burden. The entity selection process must first consider the characteristics and nature of the securities (e.g., currencies, …

Volume 23 - Front Matter

DePaul Business & Commercial Law Journal

No abstract provided.

What Lpe And The Christian Bible Have In Common, Christopher D. Hampson, Alvin Velazquez

UF Law Faculty Publications

No abstract provided.

Opioids And Oblivion: Corporate Bankruptcy And The Erosion Of Accountability In Big Pharma, Ying Yuan

Washington Law Review

In June 2024, the United States Supreme Court ruled in Harrington v. Purdue Pharma that nonconsensual releases for nondebtors are unconstitutional. The decision marked a key development in mass tort litigation involving Purdue Pharma, the company at the center of the opioid crisis. The Sackler family sought to use Purdue’s bankruptcy proceedings to shield themselves from liability, but the Court’s ruling invalidated the use of nondebtor releases to protect third parties from claims without the full consent of affected parties. While the ruling strengthens creditor protections, it creates uncertainty regarding how mass tort bankruptcies can efficiently compensate victims, particularly in …

Safeguarding Creditors' Interest In China's Debtor-In-Possession (Dip) Model: Enhancing Director Accountability For Effective Corporate Reorganization, Tianqi (Alicia) Ding

Brooklyn Journal of International Law

In recent years, China has increasingly adopted the Debtor-in-Possession (DIP) model in corporate reorganization, allowing directors to retain control of the debtor’s operations during bankruptcy proceedings. From 2019 to 2025, the use of the DIP model among listed companies rose substantially, reflecting a policy preference for efficiency, continuity of management, and the perceived advantages of director familiarity with business operations. While the DIP model may improve restructuring efficiency, it also concentrates decision-making power in directors who face limited personal accountability, thereby exposing creditors to heightened risk during insolvency. China’s existing legal framework inadequately addresses this risk. The Company Law defines …

Missing Strugglers: Debt’S Reach, Bankruptcy’S Limits, And A Proxy For Who’S Left Out, Dalié Jiménez

Brooklyn Journal of Corporate, Financial & Commercial Law

This essay uses Debt’s Grip as a point of departure to examine how debt operates as a system of social control in the United States. While the book offers a vivid portrait of those who file for bankruptcy, it also gestures toward a broader reality: millions of financially distressed individuals who never access relief. Drawing on legal scholarship and political theory, this Essay argues that debt disciplines individuals, fragments solidarity, and undermines democratic agency. It proposes a new metric—the ratio of debt collection lawsuits to bankruptcy filings—as a proxy for unmet need, revealing a population of “missing strugglers” visible to …

Myth Busters: A Review Of “Debt’S Grip”, Susan Block-Lieb

Brooklyn Journal of Corporate, Financial & Commercial Law

Debt’s Grip follows a long line of literature that looks to combat legal and cultural myths about consumer debt and consumer bankruptcy with quantitative and qualitative analysis on these topics. Who files for bankruptcy and why? Fighting longstanding myths is tough work, but Pamela Foohey, Robert M. Lawless and Deborah Thorne have marshalled a strong set of tools, and strong intellectual allies, to support this epic battle.

How And Why To Be A Strategic Debtor, Chrystin Ondersma

Brooklyn Journal of Corporate, Financial & Commercial Law

Shame and fear prevent many Americans who need debt relief from seeking it. Americans who struggle with debt should reject fear and shame and should instead feel empowered and entitled to seek relief in bankruptcy. Almost every American will need to take on debt at some point. We’re expected to use credit to acquire educations, homes, cars, and appliances—even medical care. Americans do not incur debt strategically, but rather as a matter of survival. In Dignity Not Debt, I argued that human dignity, not profits, should guide policymakers, and that our collective goal should be to end both survival debt …

Power, Tools, And Process: Some Reflections On Bankruptcy Minimalism, Edward J. Janger

Brooklyn Journal of Corporate, Financial & Commercial Law

In Unjust Debts: How Our Bankruptcy System Makes America More Unequal, Melissa Jacoby offers a brilliant and sweeping indictment of the way in which bankruptcy law is currently practiced in the United States. As she puts it, “This book is a story of falling out of love. With a law.” Like me, Professor Jacoby came of professional age, at the close of the first age of the Bankruptcy Code. Enacted in 1978, we both learned the statute in the mid-1990s, at a time when the transformative power of the 1978 Code was reaching its peak. On the business side, corporations …

Torts And Pesticide Drift: Amending Right-To-Farm Acts In The Wake Of Widespread Dicamba Drift By Nicholas Brown** And Matt Roessing*

Journal of Legal Studies in Business

When crops die in a field prior to harvest, a farmer loses a portion of his salary for that year. When the cause of the crop loss is natural, farmers can usually seek compensation through crop insurance and government commodity support programs. When the crops were lost as a result of pesticide drift, these forms of compensation are not usually available to farmers.1 In order to make up for their losses, farmers can seek damages through judicial redress. For many decades, various state and federal laws have combined to complicate and at times prevent farmers adversely affected by pesticide drift …

Cover Page & Table Of Contents - Volume 23

Journal of Legal Studies in Business

JLSB vol. 23 Title Page & Table of Contents

Incorporating Tax Law Into Legal And Regulatory Environment Of Business Courses

Journal of Legal Studies in Business

No abstract provided.