Protecting non-ERISA pension funds from the reach of creditors in bankruptcy
Article Abstract:
Interests in pension plans that are not qualified under the Employee Retirement Income Security Act (ERISA) cannot be excluded from bankruptcy estates, even if the plans include non-alienation clauses. This situation is the result of a narrow interpretation of the U.S. Supreme Court decision in Patterson v. Shumate, which has been applied only to ERISA-qualified plans. The problem could best be resolved by legislative amendment of Bankruptcy Code section 541. Other solutions include addition of an employee to qualify under ERISA, exemption under section 522, or rollover into an Individual Retirement Account.
Publication Name: Bankruptcy Developments Journal
Subject: Law
ISSN: 0890-7862
Year: 1995
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Industry-wide effects of corporate bankruptcy announcements
Article Abstract:
Analysis of stock prices shows three effects of announcements of corporate bankruptcies upon their entire industries. A positive competitive effect can occur, in which rival firms are benefitted. A negative Crandall effect can also occur, benefitting the debtor and hurting the rivals. A negative contagion effect could occur, in which the debtor and rival firms are all hurt. The competitive effect is less likely to occur than the other effects. These results support other research, and can be useful for policymakers.
Publication Name: Bankruptcy Developments Journal
Subject: Law
ISSN: 0890-7862
Year: 1996
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