Bankruptcy Law Commons^™

Defining The Relationship Between Municipal Bankruptcy And Modern Federalism Jurisprudence, John Allen Livingston

FIU Law Review

This article delves into the relationship between municipal bankruptcy law and modern federalism jurisprudence, particularly focusing on Chapter 9 reform proposals and its constitutional implications. Against the backdrop of the COVID-19 pandemic's economic challenges, the article explores the historical context of municipal bankruptcy, critiques of Chapter 9's limitations, and proposals for empowering bankruptcy courts. It analyzes key doctrines of federalism such as the Anti-Commandeering and Anti-Coercion Doctrines, as well as the Clear Statement Rule, to evaluate the constitutionality of expanding bankruptcy courts' powers. The article navigates through scholarly debates, proposing a nuanced perspective on the role of federalism, state sovereignty, …

Data In Distress: Effectuating State Data Privacy Laws During Bankruptcy, Cameron Love

Emory Law Journal

In 2000, an online toy retailer, Toysmart.com, attempted to liquidate consumer data to pay creditors in its bankruptcy case. The attempted sale drew objections from the Federal Trade Commission and forty-seven state attorneys general. Five years later, Congress attempted to resolve privacy concerns in bankruptcy, amending the Bankruptcy Code to provide clear procedures for the liquidation of “personally identifiable information.” Recently, scholars have criticized these amendments, characterizing them as “limited,” “outdated,” and “privacy theater.” This Comment adds to these criticisms, arguing the amendments’ failure to mandate consideration of relevant nonbankruptcy law puts these permissive sales procedures on a collision course …

A Bona Fide Dispute: Can Bankrupt Debtors Sell Assets Free And Clear Of Federal Civil Forfeiture Claims?, Joseph Peter Gomez

Fordham Journal of Corporate & Financial Law

Auctions are wheeling-dealing extravaganzas in which frenzies of bidders fight over shiny objects. What would happen if the government busted down the doors of the auction house, took the shiny objects, and sold them online? An asset sale through section 363(b) of the Bankruptcy Code provides a court-supervised opportunity to maximize economic value for the bankruptcy estate. To sell estate assets, the debtor must either (1) pay off each creditor holding an interest in the assets or (2) strip the creditor’s interest and attach it to the proceeds of the sale. When the government asserts a civil forfeiture claim against …

The Lease Of All Evils: How A Middle-Ground Approach Can Resolve The Bankruptcy Code Conflict Between Section 363(F) Sales And Section 365(H) Lessee Protections, Kate Christensen

Fordham Journal of Corporate & Financial Law

The Fifth Circuit’s recent decision in In re Royal St. Bistro, LLC has awakened an unsettled issue in the Bankruptcy Code that has divided the bankruptcy community for over two decades. The question examined by the Fifth Circuit was whether a non-debtor lessee with a right to continued possession through section 365(h) of the Bankruptcy Code loses this right if the debtor-lessor can sell its property “free and clear” under section 363(f). While early decisions held that section 365(h) always protects lessees against debtors’ free and clear sales, some subsequent decisions created a circuit split by ruling that section 365(h) …

Introduction (To Symposium On The Role Of Bankruptcy In The U.S. Legal System), Nancy B. Rapoport

Scholarly Works

No abstract provided.

A Life In Service: Interview With The Hon. Christopher M. Klein, Nancy B. Rapoport

Scholarly Works

Over the course of a few days, Judge Christopher M. Klein agreed to sit down, figuratively speaking, with Professor Nancy Rapoport and answer a few questions about how he approaches his job as a bankruptcy judge.

By way of background, Judge Klein was appointed to the bench in 1998 as a United States Bankruptcy Judge for the Eastern District of California. He was a member of the Bankruptcy Appellate Panel of the Ninth Circuit from 1998 through August 2008, serving as Chief Judge from 2007 to 2008. Prior to 1988, after service in the Marine Corps as an artillery officer …

Catholic Sexual Abuse In Louisiana, Leslie C. Griffin

Scholarly Works

No abstract provided.

Am I My Colleague's Keeper When It Comes To Disclosing Connections?, Nancy B. Rapoport

Scholarly Works

No abstract provided.

We Shall Overcome: The Evolution Of Quotas In The Land Of The Free And The Home Of Samba, Stella Emery Santana

Seattle University Law Review

When were voices given to the voiceless? When will education be permitted to all? When will we need to protest no more? It’s the twenty-first century, and the fight for equity in higher education remains a challenge to peoples all over the world. While students in the United States must deal with the increase in loans, in Brazil, only around 20% of youth between the ages of twenty-five and thirty-four have a higher education degree.

The primary objective of this Article is to conduct an in-depth comparative analysis of the development, implementation, and legal adjudication of educational quota systems within …

Pacific Islands And The U.S. Military: The Legal Borderlands Of The Environmental Movement, Sonia Lei

Seattle University Law Review

Climate change remains an urgent, ongoing global issue that requires critical examination of institutional polluters. This includes the world’s largest institutional consumer of petroleum: the United States military. The Department of Defense (DoD) is a massive institution with little oversight, a carbon footprint spanning the globe, a budget greater than the next ten largest nations combined, and overly generous exemptions to environmental regulations and carbon reduction targets. This Comment examines how this lack of accountability and oversight plays out in the context of three Pacific islands that have hosted U.S. military bases for decades. By considering the environmental impact of …

Disillusionment Of Discharge: The Fresh Start Through Bankruptcy Act, John Ellison

Emory Bankruptcy Developments Journal

Although its roots precede the twenty-first century, the student loan debt “issue” in America has evolved in recent years into a full-blown “crisis.” Recently surpassing credit cards and auto loans, student loan debt is the second-largest type of consumer debt in the United States, behind only mortgage debt. Prior to the Higher Education Amendments of 1976, bankruptcy provided an avenue through which student loan debt could be discharged. A series of legislative amendments, however, led to the imposition of 11 U.S.C. § 523(a)(8), which bars the discharge of student loan debt absent a showing of “undue hardship.” Courts have constructed …

Breaking Bias: A Singular Chapter Solution For Racial Equity In Consumer Bankruptcy, Jerron R. Wheeler

Faculty Articles

This article explores the aftermath of the Covid-19 pandemic, revealing a looming medical debt crisis among Black families, while examining the intersection of racial bias, attorney practices, and the existing two-chapter consumer bankruptcy system. Proposing a solution, the article advocates for the consolidation of Chapters 7 and 13 into a single chapter, citing the Consumer Bankruptcy Reform Act of 2020 (CBRA) as a potential remedy. Further, this article argues that a single chapter would simplify the bankruptcy process, reducing the influence of attorney bias and promoting uniform eligibility criteria. This approach aims to make debt relief more accessible, especially for …

Weed Like Our Money Back: Amending Pennsylvania’S Medical Cannabis Law For Insolvent Cannabusinesses, Nikolajs V. Gaikis

Dickinson Law Review (2017-Present)

In 2016, Pennsylvania joined what is now 37 states and the District of Columbia in legalizing medical cannabis. The Commonwealth’s cannabusinesses share in a struggle that is common in other legal jurisdictions: operating within the confines of the Controlled Substances Act and the Bankruptcy Code. Insolvent individuals and businesses that profit from cannabis or hold cannabis assets cannot declare bankruptcy because cannabis is a Schedule I drug. Under state law, other insolvency alternatives like an assignment for the benefit of creditors, receiverships, and compositions with creditors exist as potential alternatives.

Pennsylvania’s insolvent cannabusinesses are in a uniquely poor position because …

Designing Designer Bankruptcy, Michael A. Francus

Journal Articles

Today's mass torts are headed to bankruptcy. Be it Purdue Pharma 's opioids, United States of America (USA) Gymnastics' sexual abuse, Pacific Gas and Electric Company's (PG&E) wildfires, or Johnson & Johnson 's talc, masstort defendants have determined that bankruptcy-not class actions, multi district litigation, or one-off state suits-is the way to manage their mass-tort liability. But today's mass-tort bankruptcy is not the mass-tort bankruptcy of yesteryear, when the whole business filed for bankruptcy. Instead, these modern mass-tort bankruptcies are designer bankruptcies, where the defendant uses its corporate structure to choose which assets and which liabilities enter bankruptcy. To take …

Penalizing Compliance: The Case For Paying Chapter 13 Trustees In The Event Of Pre-Confirmation Dismissal, Hannah L. Fink

Emory Bankruptcy Developments Journal

Standing trustees provide a critical function of fairness in chapter 13 bankruptcy, but a jurisdictional split regarding their fees means that trustees in multiple circuits are not paid for a large percentage of their work. Under Ninth and Tenth Circuit precedents, standing trustees may not collect the percentage fee when the debtor’s case is dismissed before confirmation. This creates a different result for standing trustees as opposed to single-case trustees, hurts debtors and creditors, creates adverse incentives, and even constitutional conundrums.

Permitting some debtors to enjoy the benefits of chapter 13 without paying their fair share creates a system where …

Chapter 13: Let’S Call The Whole Thing Off, Lawrence Ponoroff

Emory Bankruptcy Developments Journal

Courts cannot agree on much of anything about chapter 13, and legislators cannot agree and are confused over what to do about it. This state of affairs benefits no one and shows no signs of abating. So, in this Article, I propose to throw in the towel by imagining a world without chapter 13. Spoiler alert: although I am not superstitious, with just a few tweaks and tucks to chapter 7, I think the Bankruptcy Code might just be better off operating like a high-rise elevator that goes directly from floor twelve to floor fourteen. I will lay it out …

Rural Health Care In The Age Of Hospital Bankruptcies, Sonal Rastogi

Emory Bankruptcy Developments Journal

In recent years, the United States has witnessed a surge in bankruptcy filings within the healthcare sector. Inflation, rising expenses, shifts in payment models, labor shortages, legislative uncertainty, and mounting pharmaceutical costs have impacted all healthcare organizations, casting a shadow over communities. This is particularly evident in rural America where hospital closures have shrunk access to healthcare services. This Comment delves into the challenges and interests at play when healthcare entities and nonprofit organizations navigate bankruptcy proceedings, paying particular attention to the challenges faced by health care business bankruptcy proceedings.

This Comment argues that the current bankruptcy framework requires adjustments …

Bankrupting The Matrix: Daos And The Code, Ryan Levin

Emory Bankruptcy Developments Journal

The utilization of the novel Decentralized Autonomous Organization (“DAO”) structure to conduct business activity creates substantial challenges for the Bankruptcy Code (the “Code”). The characteristics of this unregulated, extralegal entity, built entirely on a blockchain and controlled by anonymous members through digital tokens, provides endless opportunities to avoid legal enforcement and exploit the Code. While the Code has provisions to apply to both individuals and organized actors, such as partnerships and corporations, neither DAOs nor their individual token holders fit neatly into these molds. When a DAO, or a DAO token holder, eventually faces bankruptcy, the current state of the …

The Rise Of Uptier Transactions In The Leveraged Loan Market, Joshua Bichovsky

Emory Bankruptcy Developments Journal

The use of uptier transactions has exploded in the leveraged loan market, precipitated by economic pressure, flexible debt documentation, and permissive treatment by courts. In an uptier transaction, a borrower typically issues senior debt to a new or pre-existing group of lenders by exchanging outstanding debt for superpriority debt, thereby subordinating an existing class of lenders. The principal result of these transactions is that the borrower may obtain follow-on secured financing without offering the investment to all its lenders, thereby materially decreasing the value of each excluded lender’s investment. Due to the material effects of these transactions to unsuspecting lenders, …

Liquidating Fiduciary Warning: Do Not Follow The Yellow (Corp.) Brick Road, Jeremiah A. Carew Iii

Emory Bankruptcy Developments Journal

Yellow Corporation, the 99-year-old trucking giant, filed for bankruptcy on August 6, 2023. A week before filing, the company abruptly shut down its operations and laid off its entire workforce of thirty thousand employees. Under the Warn Act, employers like Yellow are required to notify their employees 60 days before conducting any mass layoffs or plant closings. Yellow, however, claimed that it did not need to give any advanced notice to its employees because it qualified for an obscure exception to the Warn Act known as the liquidating fiduciary exception.

Under the sliding scale test established in In re United …