- Semester: Fall 2015
- Course ID: 342M
- Credit Hours: 3
- Grading Method: Pass/Fail Not Allowed
- Upperclass-only elective
|MON||4:00 - 4:50 pm||JON 6.206|
|WED, THU||4:00 - 4:50 pm||JON 6.257|
|Final||December 10, 2015||8:30 am||A-Z in 3.129
DescriptionThis course covers Title 11 of the U.S. Code, the Bankruptcy Code. It includes both consumer and business bankruptcy and a modest introduction to state law collection issues. Students learn the basic concepts of "straight" bankruptcy liquidation (Chapter 7), in which a trustee is appointed to sell the debtor's assets and pay the proceeds to the creditors. For consumers, that topic includes the fresh start--the discharge of all pre-existing debt--and the identification of exempt assets. Students also study the rehabilitation provisions, under which the debtor attempts to pay all or some part of the pre- bankruptcy debt: Chapter 13 payout plans for consumers and Chapter 11 reorganization proceedings for businesses. Principal attention is given to the substance of the bankruptcy laws, including the "avoiding powers" (for example, preferences, fraudulent conveyances, and cancellation of executory contracts), treatment of secured creditors (including the automatic stay against repossession or foreclosure), and priorities in asset distribution. More than half of the course is devoted to business reorganizations in Chapter 11 [cases like Enron, Lehman Brothers, General Motors, and ASARCO], including the legal requirements for confirmation of a plan of reorganization and "cramdown" of recalcitrant creditors. Questions of jurisdiction and procedure are introduced, but are not the major focus of the course. Consideration will be given to how corporate bankruptcy matters are actually handled in the boardroom and in the courtroom. The course attempts to give balanced attention to the practice realities of negotiation and leverage within a complex of doctrinal rules and to the social and economic consequences of the bankruptcy system in both its consumer and commercial manifestations.
Textbooks ( * denotes required )
Law of Debtors & Creditors (bundle includes casebook and article 9 statutory supplement) Purchase after August 1st, 2015 *
Warren , edition: 7th
Davis, Tony M.