A re-examination of near-bankruptcy investment incentives
Voidable preference law is commonly thought of as a way of protecting assets prior to bankruptcy, but its actual benefit is probably that it discourages overinvestment by distressed firms. Preference law allows recapture of transfers made up to 90 days before bankruptcy. The law is not effective in its assumed purpose of deterring collection of assets. The immutability of the preference rules is also a problem, since some firms have more of a problem with underinvestment than with overinvestment. However, the rules are probably more beneficial than harmful overall.
Publication Name: University of Chicago Law Review
The genius of the 1898 Bankruptcy Act
The Bankruptcy Act of 1898 made federal bankruptcy law a permanent addition to the legislative landscape and led to the existence of a bankruptcy bar. In contrast to existing British law, the Act gave American bankruptcy a 'minimalist' administrative structure with relatively generous provisions that encouraged filing and and discharge of debts.
Publication Name: Bankruptcy Developments Journal
- Abstracts: An examination of the champertous assignment of bare causes of action. Freight forwarder: principal or agent? What difference does it make?
- Abstracts: Victim restitution will tie courts into knots. Trade marks, descriptions of origin and the internal market. Confidential commercial information and breach of fiduciary duty - the liability of third parties in knowing receipt to make restitution
- Abstracts: Beyond litigation: new approaches in state/local sector collective bargaining. Patterns of teacher bargaining in Canada and the United States
- Abstracts: Fighting genetic discrimination; lawyer, denied insurance on basis of father's disease, backs protective laws
- Abstracts: An analyst's view of insurance insolvency. Market discipline and the financial strength of life insurance companies