ABI Publishes Book on Reaffirmation Agreements
Contact: John Hartgen
703-739-0800
[email protected]
ABI PUBLISHES BOOK ON REAFFIRMATION AGREEMENTS
February 6, 2009 Alexandria, Va. — The American Bankruptcy Institute recently released Reaffirmation Agreements in Consumer Bankruptcy Cases to assist both consumer debtors and practitioners involved in the process of reaffirming debts. Written by experienced consumer lawyers Don Lassman and Dan Austin, this handbook addresses what to expect under BAPCPA when consumer debtors agree to reaffirm their debts. Since BAPCPA’s implementation, the process for reaffirmations has changed significantly. Reaffirmation Agreements in Consumer Bankruptcy Cases details the relevant Code sections and forms essential to creating a binding reaffirmation.
Members of the press interested in interviewing the authors should contact John Hartgen at 703-739-0800 or [email protected]. The 128-page softbound Guide is available for pre-order ($25 ABI members; $45 non-members) at ABI's Online Bookstore. Click here to order.
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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes nearly 11,700 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
ABIs Inaugural Professional Development Program Looks to Assist Mid-Level Insolvency Practitioners
Contact: John Hartgen
(703) 739-0800
[email protected]
ABI’s INAUGURAL PROFESSIONAL DEVELOPMENT PROGRAM LOOKS TO ASSIST MID-LEVEL INSOLVENCY PRACTITIONERS
February 25, 2009, Alexandria, Va. — To better assist in the professional development of mid-level insolvency and restructuring practitioners in this busy bankruptcy market, the American Bankruptcy Institute will hold its Inaugural Professional Development Program in Chicago on May 28, 2009. The day-long program was developed by ABI's Young and New Members Committee and will be held in the Drinker Biddle & Reath LLP Conference Center.The program includes a morning educational session devoted to issues common to mid-level professionals in the areas of law, finance and accounting. The afternoon programs are specifically designed to assist the mid-level professional with networking, communication and business-development efforts and allow for hands-on dialogue and relationship-building opportunities with peers.
Program topics and speakers include:
The “Legal Session: The Importance of Understanding Fiduciary Duties” will feature panelists Alan K. Mills of Barnes & Thornburg LLP (Indianapolis), George N. Panagakis of Skadden, Arps, Slate, Meagher & Flom LLP (Chicago) and Catherine L. Steege of Jenner & Block LLP (Chicago).
Matthew R. Niemann of Houlihan Lokey (Chicago), Nancy A. Peterman of Greenberg Traurig, LLP (Chicago) and Lewis W. Solimene of Macquarie Capital (USA) Inc. (Chicago) will take part in the “Finance Session: Valuation Methodologies of Distressed Assets & Companies.”
The “Accounting Session: Identifying Financial Distress” features Michael C. Buenzow of FTI Consulting, Inc. (Chicago), Robert M. Caruso of Alvarez & Marsal (Chicago) and Holly Felder Etlin of AlixPartners LLP (New York).
Melissa Kibler Knoll of Mesirow Financial Consulting, LLC (Chicago) will moderate the “How Do I Advance at My Firm and Within My Profession?” session with panelists Michael M. Eidelman of Vedder Price P.C. (Chicago), James H. M. Sprayregen of Kirkland & Ellis LLP (Chicago) and Bettina M. Whyte of Bridge Associates, LLC (New York).
Paula Giovacchini of Gio Group, Inc. (Chicago) will lead the “Building Relationships to Generate Business” session to introduce attendees to a business-development process and activities to enhance relationships with existing clients and generate new business with prospective clients.
The “Putting the ‘Working’ in Networking” session, featuring Deborah Knupp of Akina (Chicago), is designed to provide practical tools and tips for enhancing the value of networking events to establish new relationships that can lead to future business.
Robert Gigliotti of Gio Group, Inc. (Chicago) will exemplify the difference between influence and manipulation and how to scan a situation to determine the best individual influence strategy in the “Enhancing Influence Skills to Get What You Want” session.
To find out more about ABI’s Inaugural Professional Development Program, please visit http://www.abiworld.org/MLPD09.
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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes nearly 11,700 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
ABIS Popular New York City Bankruptcy Conference to Be Held May 4
Contact:
(703) 739-0800
[email protected]
February 13, Alexandria, Va. —The American Bankruptcy Institute's
(
Glenn E. Siegel of Dechert LLP, Todd R. Snyder of Rothschild, Inc. and Albert Togut of Togut, Segal & Segal, LLP are the program chairs for the conference. Bankruptcy Judge James M. Peck (S.D.N.Y.) serves as the judicial chair.
“Nuts & Bolts: Bankruptcy Fundamentals for Young Practitioners,” a separate program on bankruptcy fundamentals for practitioners new to the bankruptcy arena, will be offered again this year. The program, chaired by Ira L. Herman of Thompson & Knight LLP, will be held on May 1 at the U.S. Bankruptcy Court of the Southern District of New York, located at the Alexander Hamilton U.S. Custom House in New York City.
Panel discussions at the conference include:
A Judges’
Roundtable, moderated by Bankruptcy Judge James M. Peck
(S.D.N.Y.), will feature a panel of bankruptcy judges
from the Southern and Eastern Districts of
The “Alternative Liquidation Regimes under Banking, Securities, Insurance and State Law” session, moderated by Lisa G. Beckerman of Akin Gump Strauss Hauer & Feld, LLP, will include panelists Luc A. Despins of Paul, Hastings, Janofsky & Walker LLP and David I. Pauker of Goldin Associates, LLC.
Durc A. Savini of Miller Buckfire & Co., LLC will moderate the “Auto Industry Panel” session featuring panelists Corrine Ball of Jones Day, Lisa J. Donahue of AlixPartners LLP, Lewis Kruger of Stroock & Stroock & Lavan LLP and Bankruptcy Judge Elizabeth S. Stong (E.D.N.Y.; Brooklyn).
The “Ethics Panel” discussion will be moderated by D. J. (Jan) Baker of Skadden, Arps, Slate, Meagher & Flom LLP and feature panelists U.S. Trustee Diana G. Adams (Region 2), Bankruptcy Judge Robert Drain (S.D.N.Y.), Jonathan L. Flaxer of Golenbock, Eiseman, Assor, Bell & Peskoe LLP and Edward S. Weisfelner of Brown Rudnick LLP.
Moderator Michael P. Richman of Foley & Lardner LLP, along with panelists Bankruptcy Judge Stuart M. Bernstein (S.D.N.Y.), Ira L. Herman of Thompson & Knight LLP, Steven J. Reisman of Curtis, Mallet-Prevost, Colt & Mosle LLP and Jeffrey N. Rich of K&L Gates LLP, will take part in the “Sales Issues” session.
The “International Session” will be moderated by Alan W. Kornberg of Paul, Weiss, Rifkind, Wharton & Garrison LLP and feature a panel including Bankruptcy Judge Allan L. Gropper (S.D.N.Y.), Jeffrey S. Sabin of Bingham McCutchen LLP, Joseph Samet of Baker & McKenzie LLP and Brian Trust of Mayer Brown LLP.
The “Liquidate and Litigate: The End of Reorganization?” session, moderated by Mark A. Broude of Latham & Watkins LLP, will feature panelists Shelly C. Chapman of Willkie Farr & Gallagher LLP, Michael L. Cook of Schulte Roth & Zabel LLP, Bankruptcy Judge Robert E. Gerber (S.D.N.Y.) and Lindsee P. Granfield of Cleary, Gottlieb, Steen & Hamilton LLP.
Glenn E. Siegel of Dechert LLP will moderate the “Teaching the New Dog Old Tricks: Changes to Code” session with panelists Prof. Troy McKenzie of New York University School of Law, Barry W. Ridings of Lazard, Wilbur L. Ross of WL Ross & Co. LLC and Albert Togut of Togut, Segal & Segal, LLP.
The “Real Estate” session, moderated by My Chi To of Debevoise & Plimpton LLP, will feature a pane that includes Bankruptcy Judge Cecelia G. Morris (S.D.N.Y.; Poughkeepsie), Alec P. Ostrow of Stevens & Lee, PC, John Pidcock of Bridge Associates LLC (Cleveland) and Sanford P. Rosen of Sanford P. Rosen & Associates, PC.
“Retail Bankruptcies Redux” will feature panelists Bankruptcy Judge Martin Glenn (S.D.N.Y.), Scott L. Hazan of Otterbourg, Steindler, Houston & Rosen, PC, William H. Henrich of Getzler Henrich & Associates LLC and Evan C. Hollander of White & Case LLP with Howard S. Beltzer of Morgan, Lewis & Bockius LLP moderating the session.
Timothy R. Coleman of The Blackstone Group will moderate the “Return of the Exchange Offer” session that includes panelists Dennis F. Dunne of Milbank, Tweed, Hadley & McCloy LLP, Gary L. Kaplan of Fried, Frank, Harris, Shriver & Jacobson LLP and Deryck A. Palmer of Cadwalader, Wickersham & Taft LLP.
The “Financing Session” will be moderated by Todd R. Snyder of Rothschild, Inc. and include panelists Matthew A. Cantor of Normandy Hill Capital, LP, Bankruptcy Judge Arthur J. Gonzalez (S.D.N.Y.), David A. Gozdecki of GE Commercial Finance (Chicago) and Deirdre A. Martini of Wachovia Capital Finance.
Moderator Michael Luskin of Hughes Hubbard & Reed LLP, along with panelists Marc Kieselstein of Kirkland & Ellis LLP;Chicago), Thomas Moers Mayer of Kramer Levin Naftalis & Frankel LLP, Peter V. Pantaleo of Simpson Thacher & Bartlett LLP and Bankruptcy Judge James M. Peck (S.D.N.Y.), will take part in the “SIRVA: The Extreme Prepack” session.
The “Valuation Issues” session, moderated by Martin J. Bienenstock of Dewey & LeBoeuf LLP, will feature panelists Bankruptcy Judge Robert E. Grossman (E.D.N.Y.; Central Islip), James M. Lukenda, CIRA, CPA of Huron Consulting Group and Mark J. Shapiro of Barclay's Capital.
Sponsors for this year’s event include: Akin Gump Strauss Hauer & Feld LLP, AlixPartners LLP, Baker & McKenzie LLP, Bank of America Business Credit, Barclay's Capital, Bingham McCutchen LLP, Bridge Associates LLC, The Blackstone Group, Cadwalader, Wickersham & Taft LLP, Citigroup, CIT National Restructuring Group, Cleary, Gottlieb, Steen & Hamilton LLP, Curtis, Mallet-Prevost, Colt & Mosle LLP, Debevoise & Plimpton LLP, Dechert LLP, Dewey & LeBoeuf LLP, Epiq Systems, Fried, Frank, Harris, Shriver & Jacobson LLP, Foley & Lardner LLP, Golenbock, Eiseman, Assor, Bell & Peskoe LLP, GE Commercial Finance, Getzler Henrich & Associates LLC, Greenberg Traurig, LLP, Goldin Associates, LLC, Goldman Sachs & Co., Huron Consulting Group LLC, Jones Day, Kirkland & Ellis LLP, K&L Gates LLP, Kramer Levin Naftalis & Frankel LLP, Latham & Watkins LLP, Loeb & Loeb LLP, Luskin, Stern & Eisler LLP, Mayer Brown LLP, Miller Buckfire & Co., LLC, Melville Capital, Mesirow Financial Consulting, LLC, Morgan, Lewis & Bockius LLP, Normandy Hill Capital, LP, O'Melveny & Myers LLP, Otterbourg, Steindler, Houston & Rosen, PC, Paul, Weiss, Rifkind, Wharton & Garrison LLP Rothschild, Inc., Reed Smith LLP, Rothschild, Inc., Sanford P. Rosen & Associates, PC, Schulte Roth & Zabel LLP, Shearman & Sterling LLP, Simpson Thacher & Bartlett LLP, Skadden, Arps, Slate, Meagher & Flom LLP, Stroock & Stroock & Lavan LLP, Stevens & Lee, PC, Thompson & Knight LLP, Togut, Segal & Segal, LLP, Weil, Gotshal & Manges LLP, White & Case LLP, Willkie Farr & Gallagher LLP, W.L. Ross & Co. Special thanks to Donlin, Recano & Company, Inc. for underwriting the VIP Speaker Sponsor Dinner.
For more information
about the New York City Bankruptcy Conference, call
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Experts Suggest Establishing New Chapter 10 Bankruptcy for Companies that are Too Big to Fail
Contact: John Hartgen
(703) 739-0800
[email protected]
EXPERTS SUGGEST ESTABLISHING NEW CHAPTER 10 BANKRUPTCY FOR COMPANIES THAT ARE “TOO BIG TO FAIL”
February 19, 2009, Alexandria, Va. — As an alternative to a chapter 11 bankruptcy or government bailout, two bankruptcy experts have suggested a new “chapter 10” bankruptcy to be established within the Bankruptcy Code for companies that are viewed as “too big to fail.” In response to financial distress of large companies, primarily the “Big Three” automakers General Motors, Chrysler and Ford, authors Prof. George W. Kuney of the University of Tennessee College of Law (Knoxville, Tenn.) and Michael St. James of St. James Law PC (San Francisco) have laid out their idea in the article “A Proposal for Chapter 10: Reorganization for ‘Too Big to Fail’ Companies,” to be published in the March 2009 issue of the American Bankruptcy Institute Journal.
Kuney and St. James found that a chapter 11 filing for companies such as the Big Three automakers “would inevitably impose great harm on vendors and other interrelated businesses.” The authors said that the primary problem with the current chapter 11 process was that a filing by a “too big to fail” (TBTF) company was that it could result in a cascade of business failures and layoffs for other nondebtor companies. The cascade of business failures would be due in large part to the “ordinary-course-of-business trade debts,” such as vendor payments and payroll expenses, that are put on hold for months or years while a company negotiates a reorganization plan. Vendors dependent on those payments, such as auto suppliers, are also likely to fail as a result of a TBTF company bankruptcy.
To remedy this potential problem of cascading business failures, the authors’ proposal for a new chapter 10 bankruptcy centers on excluding ordinary-course-of-business trade debts from the current chapter 11 process. “This one modification will free the bankruptcy process for a TBTF company from administering multitudes of granular claims that are unrelated to its core financial problems,” according to Kuney and St. James. “Since payables would not be disrupted by the bankruptcy filing, the bankruptcy of the TBTF company would not inevitably and automatically lead to cascading business failures.”
While providing the important exclusion for ordinary-course-of-business trade debts, the authors said that the chapter 10 process would closely resemble the chapter 11 filing process. The chapter 10 proposal would adopt the processes established by the current chapter 11 structure with respect to the restructuring of ongoing contractual relationships, modification or rejection of collective-bargaining agreements, restructuring of secured debt and the restructuring of rights and powers of the various financial stakeholders and constituencies in the bankruptcy case.
To obtain a copy of “A Proposal for Chapter 10: Reorganization for ‘Too Big to Fail’ Companies,” please contact John Hartgen at 703-739-0800 or via email at [email protected]. In addition, make sure to visit ABI’s Bankruptcy Town Hall Web site to read expert opinions and view several quick polls about whether the U.S. automakers should file for bankruptcy or if the federal government should provide further financial assistance to the struggling companies. To view the ABI Bankruptcy Town Hall site, please visit http://townhall.abiworld.org/.
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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,700 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
Congress Should Not Enact a 3-6 Month Foreclosure Moratorium According to Latest ABI Quick Poll
Contact: John Hartgen
(703) 739-0800
[email protected]
CONGRESS SHOULD NOT ENACT A NATIONAL 3-6 MONTH FORECLOSURE MORATORIUM, ACCORDING TO LATEST ABI QUICK POLL
February 2, 2009, Alexandria, Va. — A large majority of respondents (60 percent) in a recent ABI Quick Poll think that Congress should not pass legislation providing for a national 3-6 month foreclosure moratorium in response to the housing crisis. Fifty-two percent of respondents “strongly disagreed” and 8 percent “somewhat disagreed” that Congress should pass legislation establishing a national foreclosure moratorium for 3-6 months.
However, 36 percent of respondents agreed that Congress should pass legislation providing for a national 3-6 month foreclosure moratorium. Thirty percent “strongly agreed” and 6 percent “somewhat agreed” that Congress should pass legislation suspending foreclosures for 3-6 months. Two percent of respondents did not know or had no opinion on the issue.
The Quick Poll was based on proposals to suspend foreclosures nationwide for 3-6 months, such as the 90-day moratorium recently recommended by Senate Banking Chair Christopher Dodd (D-Conn.) as part of the economic stimulus package. Many states have explored the idea of foreclosure moratoriums as a method of easing the housing crisis. Proponents of a national foreclosure moratorium say that it would give distressed borrowers and lenders time to seek financial relief. Opponents of a national foreclosure moratorium argue that it could delay the recapitalization of the banking system and delay the restoration of stability in the financial markets and financial relief to homeowners.
ABI members and members of the public were welcome to submit their response to the statement: “Congress should pass legislation providing for a national, 3 to 6 month foreclosure moratorium.”
ABI’s Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. Visit http://www.abiworld.net/quickpoll/ to access the results of previous ABI Quick Polls.
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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes nearly 11,700 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
Total Bankruptcy Filings Increase 31 Percent Business Filings Surge 54 Percent in 2008
Contact:
(703) 739-0800
[email protected]
TOTAL BANKRUPTCY FILINGS INCREASE 31 PERCENT, BUSINESS FILINGS SURGE 54 PERCENT IN 2008
March 5, 2009 Alexandria, Va. — Total bankruptcy filings in the United States increased 31 percent in 2008 over calendar year 2007, according to data released today from the Administrative Office of the U.S. Courts (AOUSC). Bankruptcy filings totaled 1,117,771 for the 12-month period ending Dec. 31, 2008, a significant increase over the previous year’s total of 850,912. The 2008 filing total marks the first year since the implementation of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) that bankruptcies have surpassed 1 million.
'Today's numbers confirm what we have reported previously, that
bankruptcies are on the rise, and will continue to spike upward in
2009,' said
Business bankruptcies recorded the sharpest percentage increase as the 43,546 business filings during calendar year 2008 represented a 54 percent increase in filings from the 28,322 filings made during the 12-month period ending Dec. 31, 2007. The 12-month business filing total for 2008 was the highest since the 44,367 filings recorded for the 1998 calendar year.
The 1,074,225 consumer filings during the 2008 calendar year represented a 31 percent increase over the 822,590 recorded during the same period in 2007. The 714,389 consumer chapter 7 filings during the 12-month period ending Dec. 31, 2008, comprised 67 percent of the total consumer filings for the 2008 calendar year, up from 61 percent the previous year. The consumer chapter 7 total for 2008 represented a 43 percent increase over the 500,613 consumer chapter 7 filings during 2007.
The 358,947 consumers who filed for chapter 13 during the 12-month period ending Dec. 31, 2008, comprised 33 percent of the overall consumer filing total. The consumer chapter 13 total for 2008 represents a 12 percent increase over the 321,359 consumer chapter 13 filings during 2007.
The 301,317 total bankruptcies recorded during the fourth calendar quarter of 2008 (Oct.1-Dec. 31, 2008) represent a 31 percent increase from the 226,413 filings during the same period in 2007. The 2008 fourth calendar quarter filing total was the first time since the implementation of BAPCPA that quarterly filings have eclipsed 300,000. The fourth quarter 2008 filing total also represented a 3 percent increase over the third quarter (July 1 – Sept. 30, 2008) total of 292,291.
The 288,416 consumer filings in the fourth quarter of 2008 represent a 32 percent increase in comparison to the 218,428 consumer filings for the same quarter of 2007. The consumer filing total for the fourth calendar quarter also represented a nearly 3 percent increase from the third quarter 2008 total of 280,787 consumer filings.
Business filings, which totaled 12,901 for the fourth calendar quarter of 2008, represented a 62 percent increase from the 7,985 filed in the same 3-month period in 2007 (Oct. 1-Dec. 31). Business filings also rose over the previous quarter as the fourth calendar quarter represented a 12 percent increase over the 11,504 business filings reported during the third quarter of 2008 (July 1- Sept. 30).
The chapter* breakdown of BUSINESS filings for the 3-month period ending Dec. 31, 2008, is 8,872 chapter 7s, 2,941 chapter 11s, 90 chapter 12s and 970 chapter 13s.
The chapter breakdown of NONBUSINESS filings for the 3-month period ending Dec. 31, 2008, is 193,246 chapter 7s, 234 chapter 11s and 94,935 chapter 13s.
States with the HIGHEST PER CAPITA FILING RATE (Total Filings) for the 12-month period ending Dec. 31, 2008:
- Nevada
- Georgia
- Indiana
- Michigan
- Ohio
- Kentucky
- 10. Illinois
Districts with the HIGHEST PERCENTAGE INCREASE in Total Filings for the 12-month period ending Dec. 31, 2008 (compared to the identical period in 2007):
- Central District of California: 93.5%
- District of Arizona: 78.9%
- Eastern District of California: 78.1%
- Southern District of California: 76.6%
- District of Delaware: 73.9%
Districts with the HIGHEST PERCENTAGE DECREASEin Total Filings for the 12-month period ending Dec. 31, 2008 (compared to the identical period in 2007):
- District of the Northern Mariana Islands: -29.4%
- District of the Virgin Islands: -21.7%
- Southern District of the Texas: -6.1%
- Middle District of Louisiana: -3.1%
- Northern District of New York: -2.2%
More information will be available at ABI’s Statistics Page, http://www.abiworld.org/statistics.
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*Definitions from Bankruptcy Overview: Issues, Law and Policy,
by the American Bankruptcy Institute
Chapter
7 of the Bankruptcy Code is available to
both individual and business debtors. Its purpose is to achieve a fair
distribution to creditors of the debtor’s available non-exempt
property. Unsecured debts not reaffirmed are discharged, providing
a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.
February Consumer Bankruptcy Filings Increase 29 Percent over Last Year
Contact: John Hartgen
(703) 739-0800
[email protected]
FEBRUARY CONSUMER BANKRUPTCY FILINGS INCREASE 29 PERCENT OVER LAST YEAR
March 3, 2009, Alexandria, Va.— U.S. consumer bankruptcy filings increased 29.2 percent nationwide in February from the same period a year ago, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The overall February consumer filing total of 98,344 represented nearly an 11 percent increase from the January total of 88,773. Chapter 13 filings constituted 30.2 percent of all consumer cases in February, a 2.6 percent decrease from January.
“We expect at least 1.4 million bankruptcies this year, even more if Congress changes the law to permit residential home mortgages to be modified in chapter 13,” said ABI Executive Director Samuel J. Gerdano.
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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 12,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
NBKRC is an online research center that offers subscribers access to up-to-date research and statistics on bankruptcy filings. The database contains complete information dating back to 1995. For more information on NBKRC, please visit http://www.nbkrc.com.
*Definitions from Bankruptcy
Overview: Issues, Law and Policy, by the American
Bankruptcy Institute.
Chapter
7 of the Bankruptcy Code is available to
both individual and business debtors. Its purpose is to achieve a fair
distribution to creditors of the debtor’s available non-exempt
property. Unsecured debts not reaffirmed are discharged, providing
a fresh financial start.
Chapter 11 of the Bankruptcy Code is available for both business and consumer debtors. Its purpose is to rehabilitate a business as a going concern or reorganize an individual’s finances through a court-approved reorganization plan.
Chapter 12 of the Bankruptcy Code is designed to give special debt relief to a family farmer with regular income from farming.
Chapter 13 of the Bankruptcy Code is available for an individual with regular income whose debts do not exceed specific amounts; it is typically used to budget some of the debtor’s future earnings under a plan through which unsecured creditors are paid in whole or in part.
University of Miami Wins ABIs 17th Annual Duberstein National Bankruptcy Moot Court Competition
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Contact: Carolyn Kanon UNIVERSITY OF MIAMI WINS ABI'S 17th ANNUAL DUBERSTEIN NATIONAL BANKRUPTCY MEMORIAL MOOT COURT COMPETITION
March 18, 2009 Alexandria, Va. — A team from the University of Miami School of Law won the 17th Annual Chief Judge Conrad B. Duberstein National Bankruptcy Memorial Moot Court Competition, overcoming a tough challenge from the University of Kansas. The University of Miami also won the competition in 2003, and won third place and best brief at the 2008 competition. Forty-six teams from law schools all around the country, comprised of 2-3 students each, took part in this year's competition, held March 14-16 in New York. The competition, the nation's only moot court competition devoted entirely to bankruptcy, is jointly sponsored by the American Bankruptcy Institute (ABI) and St. John's University School of Law, and is named for St. John's alumnus and former ABI Director Chief Judge Conrad B. Duberstein. The annual competition problem focuses on two sophisticated cutting-edge issues of bankruptcy law. This year's problem was set in the context of the current economic downturn and the ongoing debate over whether modern structured finance techniques are useful commercial innovations or 'financial weapons of mass destruction,' as Warren Buffett has suggested. 'This year's teams were unbelievably good. This was a very difficult problem, yet the students mastered it and presented better arguments than you usually hear in actual appellate cases,' said G. Ray Warner, Professor of Law and Director of the Bankruptcy LL.M. program at St. John's. 'With such timely issues, the competition also gives the judges an outstanding presentation of issues that they will soon see in their own courts.' The ABI Endowment Fund provided $13,000 in prize money to the top team and individual competitors. The first-place winner received $5,000 and the second-place team won $3,000. Teams from DePaul University College of Law and the Southern Methodist University Dedman School of Law each received $1,500 for their third-place tie, and a team from Southern Methodist University won $1,000 for the Best Brief. Ashley H. Nader, a student at the Mississippi College School of Law, won the $1,000 Best Oral Advocate award. The final round was held on Monday, March 16, at the Brooklyn Bankruptcy Courthouse, which was officially renamed the Conrad B. Duberstein United States Bankruptcy Courthouse during a ceremony the same day. Nearly 200 lawyers and judges helped judge the event, which included eight rounds of arguments. In addition to New York-area bankruptcy judges, ABI brought in a dozen bankruptcy judges from around the nation to judge the advanced rounds and attend the awards dinner, held on March 16 at Pier 60, Chelsea Piers in Manhattan. The final-round judges were Hon. Jerry E. Smith (U.S. Court of Appeals, Fifth Circuit), Hon. Jeffrey S. Sutton (U.S. Court of Appeals, Sixth Circuit), Hon. Michael J. Melloy (U.S. Court of Appeals, Eighth Circuit), Hon. Stuart M. Bernstein (Chief Judge, U.S. Bankruptcy Court, S.D.N.Y.) and Hon. Carla E. Craig (Chief Judge, U.S. Bankruptcy Court, E.D.N.Y.). Further information on the 17th Annual Chief Judge Conrad B. Duberstein National Bankruptcy Memorial Moot Court Competition, as well as information on previous winners, can be found at www.abiworld.org/moot09/. ### ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes nearly 12,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.
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Mortgage Modification Automotive Industry Distress Among Topics to be Discussed at ABIs 2009 Central States Bankruptcy Workshop
Contact:
(703) 739-0800
[email protected]
MORTGAGE MODIFICATION, AUTOMOTIVE INDUSTRY DISTRESS AMONG
TOPICS TO BE DISCUSSED AT
March 12, 2009, Alexandria, Va.
—The American Bankruptcy Institute’s (
Returning to this year’s Workshop are a series of six unique “Judicial Debates,” where judges change roles and act as advocates.
The following propositions will be debated this year at the first round of “Judicial Debates,” moderated bytheprogram’s Advisory Board Chair Anne B. Miller of Novare, Inc. (Crystal Lake, Ill.):
- Bankruptcy Judges Steven W. Rhodes (E.D. Mich.; Detroit) and Mary Ann Whipple (N.D. Ohio; Toledo) will debate “11 U.S.C. §547 should be repealed.”
- “Bankruptcy judges should have authority to modify residential mortgages” will be debated by Bankruptcy Judges Susan V. Kelley (D. Wis.; Milwaukee) and Eugene R. Wedoff (N.D. Ill.; Chicago).
- “A chapter 11 case that has been filed solely for the benefit of the secured creditor must be dismissed” will be debated by Bankruptcy Judges J. Philip Klingeberger (N.D. Ind; Hammond) and Robert D. Martin (W.D. Wis.; Madison).
The second round of “Judicial Debates, moderated by Doug Lutz of Frost Brown Todd, LLC (Cincinnati), will feature:”
- Debating “The means test controls the dividend to unsecured creditors in a chapter 13 bankruptcy case” will be Bankruptcy Judges Arthur I. Harris (N.D. Ohio; Cleveland) and Pamela Pepper (E.D. Wis.; Milwaukee).
- Bankruptcy Judges John E. Hoffman, Jr. (S.D. Ohio; Columbus) and Guy R. Humphrey (S.D. Ohio; Dayton) will debate “Bankruptcy judges have the authority to compel a carve-out for payment of administrative professional fees.”
- The “Success in chapter 13 cases should be measured by whether the debtor obtains a discharge” debate will feature Bankruptcy Judges Margaret Dee McGarity (E.D. Wis.; Milwaukee) and Daniel S. Opperman (E.D. Mich.; Bay City).
Concurrent sessions at this year’s Workshop include:
“How to Avoid Problems with the Trustee: Consumer Best Practices,” will feature moderator Brian J. Small of Thav, Gross, Steinway & Bennett, PC (Bingham Farms, Mich.) with panelists Bankruptcy Judge Bruce W. Black (N.D. Ill.; Chicago) and Paul G. Swanson of Steinhilber, Swanson, Mares, Marone & McDermott (Oshkosh, Wis.).
The “Tell It to the Bankruptcy Judge? Limitations on Bankruptcy Court Jurisdiction” session, moderated by Kathryn Pamenter of Goldberg Kohn Bell Black Rosenbloom & Moritz, Ltd. (Chicago), will feature panelists Michael P. O'Neil of Taft Stettinius & Hollister LLP (Indianapolis), Bankruptcy Judge John H. Squires (N.D. Ill; Chicago) and Scott A. Wolfson of Bush Seyferth & Paige PLLC (Troy, Mich.).
Karen E. Evangelista of Karen E. Evangelista, PC (Auburn Hills, Mich.) will moderate the “Keep Your License: Ethical Issues for Consumer Bankruptcy Attorneys, Debtor and Creditor” session with panelists Eugene Crane of Crane, Heyman, Simon, Welch & Clar (Chicago), Karen R. Goodman of Shefsky & Froelich Ltd. (Chicago) and Bankruptcy Judge Walter Shapero (E.D. Mich.; Detroit).
The “So Much Information, So Little Time: Managing Consumer Cases in the Electronic Age” session will be moderated by James W. Boyd of Zimmerman, Kuhn, Darling, Boyd, Taylor and Quandt, PLC (Traverse City, Mich.) and feature panelists Joseph E. Cohen of Cohen & Krol (Chicago), Ryan B. Moran of Ryan B. Moran, PLLC (Royal Oak, Mich.) and Bankruptcy Judge Lawrence S. Walter (S.D. Ohio; Dayton).
Moderator Christopher J. Stroebel of von Briesen & Roper, SC (Madison, Wis.) will be joined by panelists Jamie Leigh Hadac of Foresite Realty Partners, LLC (Rosemont, Ill.), Bankruptcy Judge Pamela S. Hollis (N.D. Ill.; Chicago), Barry P. Lefkowitz of Virchow, Krause & Company, LLP (Southfield, Mich.) and Mark L. Radtke of Shaw Gussis Fishman Glantz Wolfson & Towbin LLC (Chicago) for the “Remember When That Real Estate Was Worth Something? Dealing with the Distressed Real Estate Market in Insolvency and Restructuring Proceedings” session.
Thomas A. Morrow of AlixPartners LLP (Southfield, Mich.) will moderate “The Never-ending Story: Recent Trends in Automotive Restructuring” session with panelists Kriss Andrews of BBK (Southfield, Mich.), Francis X. Buckley, Jr. of Thompson Coburn Fagel Haber (Chicago), Laura Marcero of Grant Thornton LLP (Southfield, Mich.) and Bankruptcy Judge Phillip J. Shefferly (E.D. Mich.; Detroit).
The “Chapter 13 Discharge Issues: How to Reach the Finish Line” session, moderated by Chapter 13 Trustee Thomas D. DeCarlo (Southfield, Mich.), will include panelists Albert Todd Almassian of Keller, Vincent & Almassian, PLC (Grand Rapids, Mich.), Richard Kerr Gustafson, II of Legal Helpers/Macey & Aleman (Chicago) and Bankruptcy Judge Mary Ann Whipple (N.D. Ohio; Toledo).
Moderator Gary Lynn Hostetler of Hostetler & Kowalik, PC (Indianapolis) will be joined by panelists Bankruptcy Judge A. Benjamin Goldgar (N.D. Ill.; Chicago), Richardo I. Kilpatrick of Kilpatrick & Associates, PC; (Auburn Hills, Mich.) and Daniel M. McDermott of the Office of the U.S. Trustee (Cleveland) for the “Consumer Practitioners: How’s Life under BAPCPA? An Update on Post-BAPCPA Consumer Case Law” session.
The “’Disclose, Disclose, Disclose!!!’” Ethics Issues in Business Cases” session will be moderated by Ronald L. Rose of Dykema Gossett PLLC (Bloomfield Hills, Mich.) with panelists Stephen M. Gross of McDonald Hopkins LLC (Bloomfield Hills, Mich.), Kimberly J. Robinson of Barack Ferrazzano Krschbaum & Nagelberg LLP (Chicago) and Bankruptcy Judge Thomas J. Tucker (E.D. Mich.; Detroit).
Matthew T. Gensburg of Greenberg Traurig, LLP (Chicago) will moderate the “Business Practitioners: Life under BAPCPA—The Impact of BAPCPA and Rule Changes in Chapter 11 Cases” session with panelists Susan M. Cook of Lambert, Leser, Isackson, Cook & Giunta, PC (Bay City, Mich.), Bankruptcy Judge James D. Gregg (W.D. Mich.; Grand Rapids) and Andrew R. Vara of the Office of the U.S. Trustee (Cleveland).
The “Breakfast with a Judge” roundtable discussion will feature Bankruptcy Judges Bruce W. Black (N.D. Ill; Chicago), Carol A. Doyle (N.D. Ill; Chicago), A. Benjamin Goldgar (N.D. Ill; Chicago), James D. Gregg (W.D. Mich.; Grand Rapids), Arthur I. Harris (N.D. Ohio; Cleveland), John E. Hoffman, Jr. (S.D. Ohio; Columbus), Pamela S. Hollis (N.D. Ill; Chicago), Guy R. Humphrey (S.D. Ohio; Dayton), Susan V. Kelley (E.D. Wis.; Milwaukee), Philip Klingeberger (N.D. Ind.; Hammond), Keith M. Lundin (Nashville), Robert D. Martin (W.D. Wis.; Madison), Margaret Dee McGarity (E.D. Wis.; Milwaukee), Marci McIvor (E.D. Mich.; Detroit), Daniel S. Opperman (E.D. Mich.; Bay City), Pamela Pepper (E.D. Wis.; Milwaukee), Steven W. Rhodes (E.D. Mich.; Detroit), Walter Shapero (E.D. Mich.; Detroit), Phillip J. Shefferly (E.D. Mich.; Detroit), John H. Squires (N.D. Ill.; Chicago), Thomas J. Tucker (E.D. Mich.; Detroit), Lawrence S. Walter (S.D. Ohio; Dayton), Eugene R. Wedoff (N.D. Ill.; Chicago) and Mary Ann Whipple (N.D. Ohio; Toledo).
For more information
about the Central States Bankruptcy Workshop, call
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Bankruptcy Court Does Not have Discretion to Confirm Chapter 13 Plan That Violates Hanging Paragraph According to Latest ABI Quick Poll
Contact: John Hartgen
(703) 739-0800
[email protected]
BANKRUPTCY COURT DOES NOT HAVE DISCRETION TO CONFIRM CHAPTER 13 PLAN THAT VIOLATES “HANGING PARAGRAPH,” ACCORDING TO LATEST ABI QUICK POLL
March 23, 2009, Alexandria, Va. — A majority of respondents (53 percent) in a recent ABI Quick Poll agreed that a bankruptcy court does not have the discretion to confirm a proposed chapter 13 plan that violates the “hanging paragraph” of 11 U.S.C. §1325(a). The “hanging paragraph,” added by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, prohibits decreasing the secured portion of a creditor’s claim to the collateral’s value if the collateral is a motor vehicle that the debtor acquired for personal use and financed with a purchase money security interest within the 910-day period before filing for bankruptcy. Thirty-two percent strongly agreed and 21 percent “somewhat agreed” that a bankruptcy court cannot confirm a chapter 13 plan that violates this provision by bifurcating the creditor’s claim into a secured claim equal to the collateral’s value and an unsecured claim for the remainder.
Twenty-eight percent of respondents did think that a bankruptcy court has the authority to confirm a chapter 13 plan that violates the “hanging paragraph.” Twenty percent “disagreed strongly” and 8 percent “somewhat disagreed” that a bankruptcy court does not have such discretion. Sixteen percent of respondents did not know or had no opinion on the issue.
The Quick Poll question was based on a Sixth Circuit decision denying confirmation to a chapter 13 debtor who wanted to restructure the payments on her vehicle to reflect what the vehicle was worth, rather than the actual amount she owed. In this case, the chapter 13 debtor had purchased her vehicle within 910 days of filing her bankruptcy petition and argued that the bankruptcy court had discretion not to enforce the “hanging paragraph,” but the court ruled that the statute’s provisions are mandatory and not subject to the discretion of the courts.
ABI members and members of the public were welcome to submit their response to the statement: “A bankruptcy court does not have the discretion to confirm a proposed chapter 13 plan that violates the ‘hanging paragraph.’” (Shaw v. Aurgroup Financial Credit Union, 2009 WL 48214 (6th Cir. Jan. 9, 2009)).”
ABI’s Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. Visit http://www.abiworld.net/quickpoll/ to access the results of previous ABI Quick Polls.
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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes nearly 12,000 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.