Bankruptcy Outline ~ Fall 2009

I. Individual Debt Collection

A. COLLECTION WITHOUT COURTS
i. Nonjudicial Collection Methods
1. Leveraging
2. Indirect Leverage in the Legal System
B. STATE LAW DEBT COLLECTION
i. Collection Remedies
1. Introduction to Judgment Collection
a. Execution
b. Turnover Orders
c. Other Writs
d. Judgment Liens by y Recordation
e. Dormancy and Limitations
f. Debt Collection by the Federal Government
g. Family Debts
h. Voluntary Liens
i. Statutory Liens and Trust Funds
j. Property Exempt from the Collection Process
k. Collection in Other Jurisdictions
i. Gerder v. Kennamer
2. The Struggle Among Creditors: Priorities
a. Background
i. Credit Bureau of Broken Bow v. Moninger
3. Discovery
4. Pre-Judgment Remedies
5. Garnishment
a. Webb v. Erickson
b. Restrictions on Wage Garnishment
i. Commonwealth Edison v. Denson
c. Creative Garnishment
i. Network Solutions Inc v. Umbro International Inc
ii. Fraudulent Conveyances and Shielding Debtor Assets
1. Origins of Fraudulent Conveyance Law
a. Twyne’s Case
2. Development of the Uniform Fraudulent Transfer Act
II. Consumer Bankruptcy (pg. 101)
A. INTRODUCTION TO BANKRUPTCY
i. Bankruptcy Court Organization
ii. Structure of the Bankruptcy Code
iii. Consumer vs. Business Bankruptcy
B. ELEMENTS COMMONS TO CONSUMER BANKRUPTCIES
i. Background
ii. Outline
iii. Getting Started
iv. The Estate
 1. Property of the Estate
a. Sharp v. Dery
b. In re Orkin
c. In re Burgess
2. The Trustee
v. The Automatic Stay (pg. 131)
1. Andrews University v. Merchant
2. Nissan Motor Acceptance Corp v. Baker
3. Preliminary Procedures
c. LIQUIDATION BANKRUPTCY – CHAPTER 7 BANKRUPTCY (pg. 141)
i. Introduction
ii. Eligibility
1. A Change in Philosophy
a. In re Shaw
2. The Presumption of Abuse
3. The Formula: Income and Expenses
a. Income
b. Expenses
i. In re Kimbro
c. Secured Debts
d. Income After Expenses
4. Policing the New Standards
a. Procedure
b. Many Roles for Debtors’ Lawyers
c. The Means Test Reconsidered
iii. Property Exempt from Seizure
1. Introduction
2. A State/Federal System
a. Texas Exemption Statutes
b. Texas Ins. Code
c. Wyoming Homestead Exemption
d. Wyoming Statute
3. Classification of Property
a. In re Johnson
b. In re Pizzi
4. Valuation of Exempt Property
a. In re Walsh
b. In re Mitchell
5. Proceeds and Tracing
a. In re Palidora
6. Partially Exempt Property
7. Security Interests in Exempt Property
8. Avoiding Judicial Liens and Non-PMSI Liens
iv. Homesteads, Trusts, and Exemption Planning
1. Homestead Exemptions
2. Exemption Planning
a. In re Reed
b. In re Reed
 3. Moving to Better Exemptions
4. Unlimited Exemptions and Asset Trusts
5. Who Cares About Exemptions
v. Claims and Distributions
1. The Claims Process
2. Disputed Claims
a. In re Lanza
3. Unsecured Claims
a. The Claim
b. Interest
c. Accelerated Claims
4. Secured Claims
a. The Claim
b. Interest
c. Attorneys’ Fees
d. Exemptions
5. Post-Petition Claims
6. Priority Among Unsecured Creditors
vi. Discharge
1. Exceptions to Discharge
a. In re Robert McNamara, Debtor
b. In re Sharpe
c. In re Hill
d. In re Patricia Miller, Debtor
e. In re Milbank
2. Tax Priorities and Discharge
3. No Discharge, and Worse—Bankruptcy Crimes
a. United States v. Cluck
vii. The Debtor’s Post-Bankruptcy Position: Reaffirmation
1. Reaffirmation of Secured Debt
a. In re Pendlebury
2. Reaffirmation of Unsecured Debt
a. In re Paglia, Debtor
3. Nondiscrimination
d. CHAPTER 13 BANKRUPTCY (pg. 275)
i. Elements of an Acceptable Plan
1. An Overview of Chapter 13
2. Payments to Secured Creditors
a. Adequate Protection
b. Modifying the Secured Creditor’s Contract
i. Associates Commercial Corp v. Rash
c. Computing the Amount the Secured Creditor Must Be Paid
i. Till v. SCS Credit Corporation
3. Payments on the Home Mortgage
4. Payments to Unsecured Creditors
a. Disposable Income
i. Below-Median Debtors
1. In re Carter
 2. In the Matter of Wyant
ii. Above-Median Debtors
1. In re Kagenveama
b. Family Support, Taxes, and Other Priority Claims in Chapter 13
i. Priority Repayments in General
ii. Tax Claims
c. Good Faith
i. In re Farrar-Johnson
d. Modification and Dismissal of Chapter 13 Plans
ii. Threshold Eligibility For Chapter 13
1. In re Murphy
iii. The Consumer Bankruptcy System
1. The Changing Consumer Bankruptcy System
a. Recoveries for Creditors
b. Chapter Choice
c. Lawyers
i. In re San Miguel
III. Business Bankruptcy
A. CHAPTER 11 REORGANIZATION
i. Introduction to Business Reorganizations
1. Overview
a. Debtor in Possession
b. A Brief History of Business Reorganization
c. High Theory and Personal Trauma
2. The Traditional Chapter 11
a. Mechanics of Chapter 11
b. The Logic of a Traditional Chapter 11
c. Analysis of a Chapter 11 Negotiation
3. Control
4. Large Public Companies and Nontraditional Chapter 11 Cases
a. Auctions
b. Prepackaged Plans
5. Single Asset Real Estate Cases (SARE)
6. Liquidation in Chapter 11
7. Costs of Chapter 11
ii. The Automatic Stay and Adequate Protection
1. General Considerations
2. Scope of the Stay
a. Farm Credit of Central Florida, ACA v. Polk
b. United States v. Seitles
3. Lifting the Stay
a. In re Rogers Development Corp
iii. Operating in Chapter 11
1. Who’s Running the Show?
a. In re Sharon Steel Corp
2. What happens to the Cash?
a. In re Earth Lite
b. In re Hal, Inc
 3. Post-Petition Financing
a. In re Garland Corp
b. In re Hubbard Power & Light, Inc
c. Shapiro v. Saybrook Manufacturing Co, Inc
d. Owner Financing
e. Financing Goods and Services
f. First Day Orders
iv. Reshaping the Estate
1. Preferences: The General Rules
a. In re Pysz
b. Chase Manhattan Mortgage Corp v. Shapiro
c. In re Denochick
2. The Exceptions
a. Contemporaneous Exchange
b. Ordinary Course Exceptions
i. In re Stewart
c. The Purchase Money Exception
d. The New Value Exception
e. The Other Exceptions
3. Executory Contracts
a. The Economic Decision
b. The Statute
i. In re Krystal Cadillac-Oldsmobile-GMC Truck, Inc
ii. In re Jamesway Corp
v. Negotiating and Confirming the Plan
1. Confirmation
a. Reorganization Structures
b. Best Interests of the Creditors and Feasibility
i. In re Malkus, Inc, Debtor
ii. In re Made in Detroit, Inc, Debtor
iii. SK-Palladin Partners v.Platinum Entertainment
c. Classification and Voting
i. In re US Truck Co, Inc
ii. In re Bernhard Steiner Pianos USA, Inc
iii. In re PPI Enterprises US, Inc
d. Claims Trading
i. In re Figter Ltd
ii. In re Northwest Airlines Corp
e. Cramdown
i. Absolute Priority and the Participation of Old Equity
1. Bank of America National Trust v. North Lasalle Street