Epstein's Law School Legends Audio on Bankruptcy, 2d
Author:
Epstein, David G.
Edition:
2nd
Copyright Date:
2019
/
9 tracks
have results for bankruptcy
Part 1A - General 19 results (showing 5 best matches)
- So, this recording is divided into a number of parts and sub-parts. And accompanying the recording, you should have a copy of my lecture notes. And that should give you some sense as to whether you wanna listen to the entire recording or what parts of the recording you wanna listen to. Because bankruptcy courses in law school differ greatly from law school to law school. Most courses cover both consumer bankruptcy and business bankruptcy. But even if they cover both consumer bankruptcy and business bankruptcy, different professors put different emphasis on consumer bankruptcy and business bankruptcy. Some professors emphasize consumer bankruptcy. Some professors spend almost all of their time on business bankruptcy. So, I'm covering both, and you can sort of figure out how you wanna allocate your time. But let me sort of start with general information that ought to be helpful to you no matter what your professor emphasized in the bankruptcy course that you took this semester. You...
- So in sum there are three big differences between bankruptcy and the state law alternatives. The first is that bankruptcy and only bankruptcy offers debtors the possibility of a discharge. Second, in bankruptcy and only bankruptcy, a court-approved restructuring of debt is binding on all creditors, even those that strongly oppose the agreement. And finally, bankruptcy is collective action. Often times that's less expensive, more efficient, than each creditor acting on its own. Now, our next general question is, what's bankruptcy law? We've got some senses to who's filing bankruptcy, why they're filing for bankruptcy. When a bankruptcy case begins, where do you find the law? Bankruptcy law is federal law. It's federal statutory law, Title 11 of the United States Code. Now Title 11 of the United States Code is divided into chapters, and most of the chapters have an odd number. The chapter numbers become real important. Chapters 1, 3, and 5 apply in all bankruptcy cases. And so when we...
- Okay, first such term is debtor. That's the bankrupt. That's the person that's filed for bankruptcy. But we never use the term bankrupt. Congress made a conscious choice that use of that term is inappropriate, improper, judgmental. And so, the people in bankruptcy, the people that have been unable or unwilling to pay their debts and now find themselves in bankruptcy, we call them debtors. Now, bankruptcy cases are generally heard in bankruptcy courts before a bankruptcy judge. And a bankruptcy judge is a part of the federal judiciary, and we'll talk about this more later. But for now, the bankruptcy judge is different from a federal district judge in that, the bankruptcy judge serves a fixed term. And so because of that, bankruptcy judges are not Article 3 judges, they're Article 1 judges. And that has an effect on their judicial power, but they're judges. And so Congress wanted to be sure that bankruptcy judges only performed judicial functions, that any administrative aspects of
- Now we're gonna learn that some creditors, those creditors that have mortgages and security interests, not only have a right to payment, which can be impaired or eliminated by federal statutes, but some of those creditors also have liens, have mortgages, have security interests, have property interest in collateral. Bankruptcy Code cannot eliminate any such property right without due process, without just compensation. Now while bankruptcy law is a federal statute, while there are no state bankruptcy laws, federal bankruptcy law incorporates state bankruptcy law in places that we'll see such as exemption statutes. So now that we know where to find bankruptcy law, and of course we're gonna be talking about some cases that you've talked about in class, that interpret or apply those statutory provisions. But let's move from this question of where do you find bankruptcy law, to who do you find in bankruptcy? Who are the important people? What terms do you have to be able to use in...
- The first such provision is 28 U.S.C 1334. And there Congress grants jurisdiction over bankruptcy cases, not to the bankruptcy judge, not to bankruptcy courts, but the district court. So we first have a grant of jurisdiction to the district court. The next important provision is 28 U.S.C 151. That tells us that the bankruptcy court is a unit of the district court, part of the district court. So when 1334 grants jurisdiction to the Federal District Court, it's really granting jurisdiction to both the district courts and the bankruptcy court. And then finally, we have 28 157. And that's called "Procedure." The most important part of 157 is the identification of what are called "Core proceedings." Now if the matter qualifies as a core proceeding, the bankruptcy judge is empowered to issue a final order. If the controversy does not come within any of the listed core proceedings, then it's not a core proceeding, or now it's referred to as a non-core proceeding. And the bankruptcy judge...
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Part 8 - Loose Ends 11 results (showing 5 best matches)
- And so you have to worry about the effect of bankruptcy on pre-bankruptcy transactions, 547, 548. Is this a preference, is it a fraudulent transfer? And also, you think about the effect of pre-bankruptcy action on the bankruptcy case. If it's an individual, for example, the pre-bankruptcy action can affect the availability of a discharge, or the debts affected by a discharge. So is it a question set before bankruptcy, or are the facts that you're given, facts after the bankruptcy petition has filed?
- We know that in reality, it's not voluntary, it's sort of a last result. But if the debtor themselves file the petition, it is called voluntary. And that's what happens in the overwhelming majority of cases. And we know that such a filing commences a case. Such a filing is itself the order for relief. No judicial action is needed. There is an alternative, Section 303 provides for creditor initiated bankruptcy. Creditors can petition the bankruptcy court to start a bankruptcy case.
- Okay. All that we have left to do is we got three sort of loose ends, and out of an abundance of caution I want to briefly cover. And then I wanna talk with you about how you approach an exam fact pattern. Okay. First loose end. Involuntary Bankruptcy, Section 303. We know that bankruptcy is commenced by the filing of a petition. We should know that most petitions are filed by the debtor. Those are euphemistically referred to as voluntary petitions.
- Now, 303 requires that there be three petitioning creditors, and requires a hearing by the judge. Involuntary bankruptcy under 303 does require judicial action, does require an actual order for relief. And at that hearing, what the three petitioning creditors must prove is that the debtor is generally not paying debts as they come due generally not paying debts as they come due. Now, let me sneak in a little bit of review. That is not insolvency as the term is used in the bankruptcy sense. Right?
- Insolvency as the term is used in the bankruptcy sense compares the debtor's nonexempt assets with liabilities. Someone can own millions of dollars of property, and not be able to pay their debts, because the assets are illiquid or not producing any income. And so, 303 does not require insolvency, it requires generally not paying debts as they come due, involuntary bankruptcies. Okay? I've eliminated that loose end..
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Part 7 - Fraudulent Transactions 6 results (showing 5 best matches)
- Preference law is unique to bankruptcy. We only apply preference law 547 when we're dealing with bankruptcy because bankruptcy has a fundamental policy difference from state law, the quality of distribution. Fraudulent conveyance is not unique to bankruptcy.
- Every state has its own fraudulent conveyance laws and these fraudulent conveyance laws in states become a part of the bankruptcy law by virtue of oblique reference in 544B, so in a sense, there are two different bankruptcy code previsions enabling the trust state to avoid fraudulent transactions and that's 548 and 544B.
- In 548, fraudulent conveyance law in 544B which incorporate...there's no presumption of insolvency even for a period within 90 days. Now I go over this because I think it's really exam important. I think you're gonna have a fact pattern that tells you there was a bankruptcy in October, and here's a whole bunch of transactions that occurred before this bankruptcy in October. And you're gonna be required then to answer the exam question to first determine when are you doing preference law 547 and whether you doing fraudulent conveyance law 548 or 544B and then being able to actually do 547 and 548.
- Here we're talking about primarily pre-bankruptcy transfers to people who are not creditors. Here we're talking not about Section 547 and it's 90-day period but here we're talking, here we're talking about 548 and 544, which have a much longer reach back period. Two years in 548 and state law reach back period in 544.
- And if D company files for bankruptcy, its guarantee and mortgage can be avoided under 548 because the reasonable equivalent value did not go to the debtor transferor, did not go to the debtor transferor. Okay. Let's just sort of stop here for a moment and compare preference law and fraudulent conveyance law.
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Part 6 - Preferences 10 results (showing 5 best matches)
- Now, if, on the other hand, the creditor is unsecured, where D owes C 100, and D pays C 50, and D files for bankruptcy, and at the end of D's 7 bankruptcy, holders of unsecured claims get 50 cents on the dollar, then it's gonna have a preferential effect. Let's work through the numbers here. Now, I know that you don't like to do math, but this isn't math, this is just arithmetic. Okay, so C got 50 before bankruptcy, which leaves it with a 50 unsecured claim, so gets 25 in bankruptcy. So as a result of the early payment, C ends up with a total of 75, 50 before bankruptcy and 25 in bankruptcy. If D had not paid C before the bankruptcy case, then C would have only received a total of 50. It does have a preferential effect. And so if the creditor to whom or for whose benefit the transfer is made is unsecured, always going to be a preferential effect unless you have this bizarre situation where all creditors get paid in full in bankruptcy.
- Now, this transfer, looking at our second element, must be for or on account of a past debt. So you're paying on Friday a credit for a debt you incurred on Monday, a past debt, an antecedent debt. And at the time of the transfer, the debtor must have been insolvent. You know, insolvent as that term is used in bankruptcy and is not used in bankruptcy very much, is it? Because after all, we know the debtors can file bankruptcy without being insolvent. But when the term is used in bankruptcy, it's a comparison of assets with liabilities, comparison of assets with liabilities, rather a comparison of assets other than exempt assets with liabilities. But more important, in 547, there is a rebuttable presumption, a rebuttal presumption, that the debtor was insolvent for 90 days before bankruptcy. And that's the general preference period.
- So one more time. In bankruptcy, we have this policy of equality of distribution. Claims that are similarly situated are treated the same. But that's very different from state law. State law is sort of first come, first served, you kill what you eat. The creditor that is most aggressive, most successful, and exercising its leverage, and exercising its legal rights can get paid in full while their creditors get nothing. Well, those are two very different universes. And so the thinking was that in order to make equality of distribution effective in bankruptcy, we need to have some sort of vehicle, some sort of device to apply retroactively. Because if not, what would be happening is that whenever creditors would sense bankruptcy is imminent they would sweep down to take advantage of the state law policy of first come, first served.
- First, there must be a transfer. You know, in your exam, the transfer is either going to be a payment or the granting or obtaining a lien such as a mortgage, a security interest, a judgment lien, an execution lien. And what is being transferred must be property of the debtor. And so, for example, if Baba files for bankruptcy, but before Baba had filed for bankruptcy, Mama had paid some of Baba's debts, Mama had paid some of Baba's debts, that's not a 547(b) preference. I understand those creditors that were paid by Mama are better off in a non-bankruptcy code since they've been preferred, but that is not a preference.
- This transfer of property of the debtor for or on account of an antecedent death must have occurred within 90 days of bankruptcy unless the creditor to whom the transfer was made or who benefited from the transfer is an insider. Now, the term insider is described in the Bankruptcy Code, and you're given a non-exclusive list of examples of who insiders are. This is pretty obvious, family members with respect to individuals, partners with respect to partnership, that kind of thing. And finally, preferential effect. It's all about enabling the transferee to receive more, preferential effect.
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Part 1B - Five Important Concepts 15 results (showing 5 best matches)
- Now even more important is our fourth concept, the automatic stay, the automatic stay. Now, we have four questions that we need to be able to answer about the automatic stay. And let's note, the automatic stay is provided for in 362. And so, the automatic stay is a part of all bankruptcy cases, 7, 11, 13. Now what the automatic stay does, is prevents a creditor from taking collection actions after the bankruptcy case is filed. Because remember, we've got a fundamental bankruptcy policy of equality of distribution. And one of the reasons creditors push for bankruptcy is it is collective action, and so we need the proverbial level playing field. After the bankruptcy case is filed, creditors cannot take collection actions against the debtor, property of the estate. Can't do that. So that's the effect of the automatic stay.
- Third and final question about claims. We know what claims are. We know what the types of claims are. Third question, bankruptcy significance of claims. It's claims that are affected by discharge. It's claims that receive distribution in the bankruptcy case. The third basic bankruptcy concept that we need to talk about is property of the estate. Now property of the estate is governed primarily by 541. 541 is a very long provision. For your exam, you need to know 541(a)(1) and 541(a)(6), and also 1306.
- Now what is property of the estate? The critical phrases are interest of the debtor and property, not Red Acre, but the interest of the debtor in Red Acre. And so, if D and X each own 50% of Red Acre, Red Acre is not property of the estate in a bankruptcy initiated by D. It would simply be D's 50% interest in Red Acre. Similarly, if D owns Red Acre but First Bank bank has a mortgage on Red Acre to secure its $100,000 debt, it's not Red Acre that's property of the estate in D's bankruptcy, but D's interest, Red Acre minus the mortgage interest of First Bank. Now property of the estate in a Chapter 7 case is determined as of the commencement of the case. And so, if D finds a lottery ticket a day after filing for Chapter 7 bankruptcy and wins the lottery, those winnings are not property of the estate. Property of the estate determine as of the time of the filing of a bankruptcy. More realistic example, again, looking at my lecture notes. D files for 7 bankruptcy on February 28th. D has...
- Let's walk through what we know. It's called the automatic stay. When does it become effective? As soon as any bankruptcy case is filed. What does it do? It bars creditors from taking action against the debtor or property of the estate. It protects the debtor. Now, it only ends when the bankruptcy case is over. But there's a possibility of creditors obtaining relief from the automatic stay.
- First of the three, what is a discharge? A discharge eliminates personal liability of the debtor. If I owe you $1,000 and I get a bankruptcy discharge, regardless of what you are paid in the bankruptcy case, I have no further personal liability to you. I have no further personal liability to you. Discharge eliminates personal liability. Discharge does not, however eliminate the debt. And so, if the $1,000 I owed to you was guaranteed by my son Charles, Charles promised that he would pay if I didn't, and I go through bankruptcy and I get a discharge, that debt does not disappear. Charles' obligation under the guarantee does not disappear. The discharge only protects the debtor from further personal liability. Or it may well be that the $1,000 I owe you was because of an automobile accident in which I was negligent. And I have insurance, but I go through bankruptcy, I get a discharge. You cannot collect the $1,000 from me. I have no further personal liability. But you can collect from...
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Part 5 - Leases (and Executory Contracts) 10 results (showing 5 best matches)
- Okay. Now, here's where it gets complicated. Here's where it gets complicated, and you need... I think it would be helpful to take a look at your bankruptcy code. Have 365C in front of you. You look at 365C, and you read it literally. A common law or statutory restriction on assignments is not only effective to bar assignments, but it is effective to bar assumptions, a statutory prohibition on assignments. There's some non-bankruptcy statute that bars assignments of a particular lease or contract. That is effective to bar, not just bankruptcy assignments, but bankruptcy assumptions. Okay.
- The second statutory option is assumption. That's where the debtor tenant simply decides to keep the lease. And so, one of the consequences of assumption, obviously, is that the debtor remains in possession of the lease, but what's non-obvious and bankruptcy exam-important is the bankruptcy code gives the landlord of a debtor tenant that assumes the lease an administrative expense priority for all posts-petition rent. One more time. The consequence of assumption is that the landlord who has a debtor tenant, the tenant who files for bankruptcy and assumes the lease, that landlord benefits from assumption because they now have an administrative expense priority claim for all post-petition rent.
- The third possibility is if it is a favorable lease, the tenant can sell its leasehold. A debtor tenant can sell its leasehold. That's called assignment. And here's what's tricky about bankruptcy assignments. After a debtor tenant assigns the lease, the debtor tenant has no further liability under the lease. The landlord has no claim in the bankruptcy. No claim in the bankruptcy but instead, the landlord can enforce the lease terms against the assignee, the person that bought the leasehold from the debtor tenant and the debtor tenant gets to keep the proceeds from the lease assignment as property of the estate.
- Watch for this on your exam if your professor spent any substantial amount of time on 365, limitations on assumption in assignment. Contract provisions have no effect. Sometimes a lease will provide that the lease terminates on bankruptcy. Such a provision, such a bankruptcy termination clause has no effect.
- Let me move to the example in the material that accompanies this audio. Let's work through this together. D Company licenses technology from X. And so, under patent law, you cannot assign a patent license outside of bankruptcy. D had never filed for bankruptcy. D could not sell that patent to someone else. D files for bankruptcy. Well, that restriction means that D cannot assign that patent to anyone else. But D does not want to assign that patent anyone else. D simply wants to keep the same rights as it had before. As a licensee, it wants to assume the license. Read literally, which is what some shortcuts have done, 365C will prevent D company from even assuming the licenses because read literally 365C says that if non-bankruptcy law bars an assignment, that has the effect in bankruptcy of not only barring any assignment but preventing assumption. There are also limitations on the effect of a rejection in two possibly exam-important situations. What if we have a real estate lease...
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Part 2 - Chapter 7 Cases 15 results (showing 5 best matches)
- But we need to look at 727(a)(2). If the debtor, within a year before the bankruptcy, within a year the bankruptcy case. transferred away property and/or with an intent to defraud creditors, I'm gonna give this to uncle George, so my creditors don't get it. If there has been such a transfer within a year before bankruptcy, that's a basis for objection to discharge, and the debtor then will have paid a filing fee, will have paid an attorney's fee, will have lost property of the estate, and get no real benefit from the bankruptcy, will still owe the debts that don't get paid off in bankruptcy. So some debtors don't get a discharge, because what they have done before filing for bankruptcy. There are also objections to discharge based on what the debtor has done or not done in the bankruptcy case, and those facts are pretty obvious. For example, there are a number of filings that the debtor must make under oath such as, listing all of its assets such as, describing all of its recent...
- But now we need to talk about a related concept, it's likely to be a part of your exam question if you get a Chapter 7 question, and that is exempt property. Individual debtors can claim in their schedule exempt property, property that is not seized and sold by the Chapter 7 Trustee. Property that the debtor can keep. Exempt means exempt from creditor access. It doesn't become property of the estate that's seized and sold. Now with respect to property of the estate, and again, watch for this, if you get a Chapter 7 question, it's gonna be an individual debtor. One of the likely problem areas is exempt property. We need to know what law determines what property is exempt. Now, in theory, Section 522 of the bankruptcy code sets out what property is exempt. That is unlikely to be used in either the real world or your exam question. While 522(d) sets out a federal exemption that's applicable for debtors who've made use of bankruptcy. 522(b) as in "boy" provides that state legislatures...
- Okay. What else did we learn about discharge? We learned what a discharge is. We learned that not everybody gets a discharge, and now we know more about that. We know the vocabulary term objections to discharge, and we know the sort of facts that provide a basis for objection to discharge. I also though, told you when we first looked at discharge that not all debts are affected by discharge. Some debts are not covered by discharge in a Chapter 7 case. In a Chapter 7 case debts that arise after the commencement of the case, after the bankruptcy petition, those debts aren't discharged. And so if D files a Chapter 7 bankruptcy on Monday, and then on Wednesday negligently injures V, that obligation to pay V is not going to be discharged in a Chapter 7 case, because a Chapter 7 discharge only discharges debts incurred before the bankruptcy case is filed.
- But what if we have a debtor who is a rolling stone, he's lived in a whole bunch of different states. What's the relevant state? Well, we've got a couple of time limits, measurements of time that could well be exam important. First we have a 730-day test. If within 730 days before the bankruptcy filing the debtor, in that two-year period, 730 days, has lived in more than one state, then we need to apply the 180-day test. It's the 180-day test, that's really confusing. So, within the two-year period before filing for bankruptcy, let's assume the debtor files in 2019, so we go back to 2017. From 2017 to 2019, did the debtor lived in more than one state? If so, then we must apply the 180-day test. And here's what's tricky about it. Here's what's bizarre about it. The 180-day test is applied for the 180 days before the 730 days. And so, if there's a 2019 bankruptcy filing, doing the 730-day test, we look to determine whether the debtor has lived in more than one state between '17 and '...
- Now 523, it's Chapter 5, so it applies in all bankruptcy cases. When we talked about objections to discharge, that was 727, objections to discharge. That's only in Chapter 7 cases, but what I'm fixing to talk with you about, 523 exceptions to discharge, those apply in all bankruptcy cases. There are some debts that are accepted from discharge. So that even though the debtor is getting a discharge, it doesn't affect these debts.
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Part 3 - Chapter 13 Cases 10 results (showing 5 best matches)
- So, what does a Chapter 13 trustee do? Well, the first thing they do is they review the schedules and the proposed plan and make a recommendation to the bankruptcy judge, make a recommendation to the bankruptcy judge about the proposed plan. Again, Chapter 13 is all about the plan, a plan prepared by the debtor's attorney, a plan that is reviewed by the trustee and approved by the bankruptcy court. We call that approval confirmation. The plan typically, as I mentioned before, provides for payments from the debtor's post-petition income. And if the debtor makes all of those payments over the life of the plan, which is typically five years 60 months, then and only then does the debtor receive a discharge. So, let's real quickly compare what we know.
- D buys a car a year before filing Chapter 13 bankruptcy and buys the car for her own personal use. At the time of commencement of the bankruptcy case, D still owes $30,000 on the car, which is only worth $20,000. That's irrelevant. That can't be taken into account in Chapter 13. Now, the Chapter 13 plan can change the amount of a particular monthly payment or change the interest rate, but there is a $30,000 debt secured by the car. Last point with respect to Chapter 13, a point that I've made before but really important.
- It's called cramdown because this is not necessarily something that the creditor agreed to. A cramdown is a bankruptcy euphemism for a court-imposed change in a creditor's rights. And so, if we have a secured claim of collateral worth $70,000 securing a debt of $100,000, the payments over the 60-month period must be at a sufficient interest rate that has a present value of $70,000. Now, what is that interest rate? Well, there's a case that you may have read dealing with that interest rate called Till, T-I-L-L, which gives the bankruptcy judge a great deal of discretion in figuring out what the cramdown interest rate is.
- If there is both a first and second mortgage and the first mortgage amount, let's say it's $100,000, is greater than the value of the collateral, the home is only worth $80,000. The first mortgage is $100,000. There's a second mortgage of $20,000. Well, that second mortgage's really insecured. There's no collateral there. If that's the case, that second mortgage can be eliminated in the Chapter 13 bankruptcy.
- We have a different kind of trustee in Chapter 13. In Chapter 7, it's somebody out of the private sector. Being a Chapter 7 trustee is case-by-case basis, not a full-time job. In Chapter 13, you have a trustee appointed for all the Chapter 13 cases in that district, and that is a full-time job. I have talked with you about the plan approved by the bankruptcy judge but reviewed and recommended or not recommended by the Chapter 13 trustee. In the real world, it's typically the Chapter 13 trustee that is the important person.
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Part 4 - Chapter 11 9 results (showing 5 best matches)
- Okay. I've made vague references to business operation issues in connection with Chapter 11. Let me talk about several of those business operation issues that you might see on your exam. The first is paying critical vendors. Now, this term, critical vendors, nowhere appears in the Bankruptcy Code and there's no statutory provision that directly addresses the question of whether critical vendors, whoever they are, can be paid. The problem is that an operating business may well have some essential suppliers that it needs to continue supplying it. And these suppliers may well be unwilling to supply because substantial pre-bankruptcy debts exist that they supplied the debtor prior to bankruptcy and were not paid. And so, these critical vendors refuse to supply.
- Well, some courts have looked to Section 105, which empowers the court to, in essence, act as a court of equity and do what is necessary and proper to affect the operation of the statutory provisions. And some courts authorize payments to these critical vendors during the course of the bankruptcy case. Other courts say, "That's inconsistent with basic policies of bankruptcy. It is inconsistent with the basic bankruptcy policy of equality of distribution. The creditors who have similar legal rights must be treated similarly, that it's inconsistent with the payment pattern of Chapter 11 in which pre-petition debts are not paid until confirmation of a plan." And so, this is something that you covered in class. Payment of critical vendors, Section 105. Watch for that on your exam.
- Second, operational issue to watch for. Section 363, in essence, requires court approval of any non-ordinary course of business transactions by a Chapter 11 debtor during the course of the bankruptcy case. One more time. Section 363 requires court approval of non-ordinary course transactions of a Chapter 11 debtor. Third, operational issue to watch for. Obtaining post-petition financing, what's sometimes referenced as a DIP loan, as a DIP loan. Here, we need to watch for a couple of non-statutory terms. If your professor used them in class, watch for this on your exam.
- The other requirement in 1129(b), this requirement of fair and equitable, is a requirement that is also called the absolute priority rule. And under the absolute priority rule, all creditors must be paid in full before owners get anything. Perhaps you learned in your Business Associations class, debt comes before equity in the balance sheet, and in law, and now in bankruptcy law. All creditors must be paid in full before equity gets anything. But remember, again, 1129(b) only applies if there is one or more classes of stock that do not accept the plan by the requisite majority.
- The first such term is cross-collateralization. Cross-collateralization. That's a situation in which a creditor who has extended post-petition credit offers to extend pre-petition credit if both the pre-petition loan and the post-petition loan are secured by all collateral, both pre-petition property and post-petition assets. And that's problematic because it represents an improvement in position with respect to pre-petition loans. It, in essence, increases the collateral available to secure pre-petition loans. It's called cross-collateralization because the collateral available, in essence, crosses the line established by the filing of a petition. So, one more time. Post-petition financing that includes a provision that increases the collateral available to secure a pre-petition loan creates problems, is inconsistent with this notion of equality, represents an improvement in position that is inconsistent with bankruptcy policy.
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- Publication Date: May 17th, 2019
- Subject: Bankruptcy/Creditors' Rights
- Series: Law School Legends Audio Series
- Type: Audio Lectures
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Description:
This audio discussion is designed for students who are about to take their final exam in a bankruptcy course and need help in:
- Understanding bankruptcy concepts;
- Seeing the relationship between various bankruptcy concepts;
- Organizing what they read for class and heard in class;
- Anticipating what might be asked on their exam; and
- Structuring possible exam answers
Because some professors emphasize business bankruptcy and some professors emphasize consumer bankruptcy, the audio and accompanying material are divided into (1) bankruptcy concepts that will be important in an exam question on business bankruptcy, (2) bankruptcy concepts that will be important in exam questions on consumer bankruptcy and (3) bankruptcy concepts that will be important in all exam questions. Student study time is limited and precious and this division enables them to focus on what their individual professor has focused on.
