Press Releases

October Consumer Bankruptcy Filings Increase Slightly from Previous Month

Contact: John Hartgen
703-894-5935
[email protected]

OCTOBER CONSUMER BANKRUPTCY FILINGS INCREASE SLIGHTLY FROM PREVIOUS MONTH

November 2, 2010, Alexandria, Va.— U.S. consumer bankruptcy filings totaled 132,173 nationwide during October, a 1.4 percent increase over the 130,329 total consumer filings recorded in September, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). While the October consumer filings represented an increase from the previous month, they represented a 2.75 percent decrease from the October 2009 total of 135,913. Chapter 13 filings constituted 29.7 percent of all consumer cases in October, a slight decrease from September.

“As the issues of unemployment and economic stress weigh heavily on today’s elections, consumers continue to seek the financial shelter of bankruptcy,” said ABI Executive DirectorSamuel J. Gerdano. “We anticipate that there will be nearly 1.6 million consumer bankruptcy filings by year end.”

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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 12,600 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.

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November Consumer Bankruptcy Filings Drop 13 Percent from October

Contact: John Hartgen
703-894-5935
[email protected]

NOVEMBER CONSUMER BANKRUPTCY FILINGS DROP 13 PERCENT FROM OCTOBER

December 1, 2010, Alexandria, Va. - U.S. consumer bankruptcy filings totaled 114,587 nationwide during November, a 13.3 percent drop from the 132,173 total consumer filings recorded in October, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). While the November consumer filings represented a decrease from the previous month, they represented a 2.2 percent increase from the November 2009 total of 112,152. Chapter 13 filings constituted 29.6 percent of all consumer cases in November, a slight decrease from October.

'The drop in consumer filings from October is perhaps a positive step that the deleveraging of the U.S. consumer may be underway, after years of expanding consumer debt,' said ABI Executive Director Samuel J. Gerdano. 'Still, we anticipate that there will be nearly 1.6 million consumer bankruptcy filings by year end.'

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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.

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Corporate Debtors Choice of Location to File Based on State of Incorporation Should Be Eliminated According to ABI Quick Poll

Contact: John Hartgen
703-894-5935
[email protected]

CORPORATE DEBTORS’ CHOICE OF LOCATION TO FILE BASED ON STATE OF INCORPORATION SHOULD BE ELIMINATED, ACCORDING TO CLOSE VOTE IN LATEST ABI QUICK POLL

December 21, 2010, Alexandria, Va. —Fifty-one percent of respondents to ABI’s latest Quick Poll believe that the Bankruptcy Code should be amended to eliminate the option of corporate debtors to file their case based on the state of incorporation. Forty percent “strongly agreed” and 11 percent “agreed somewhat” that corporate debtors’ choice of location to file based on state of incorporation should be eliminated.
The Bankruptcy Code currently permits corporations to consider venue options for their proceedings based on domicile or state of incorporation, location of principal assets, principal place of business and whether an affiliate has a case pending in the district. The option to allow businesses to file in the state in which they incorporated has been criticized by some stakeholders who believe that companies are filing in court districts of states that are away from their primary base of operations.

Forty-six percent of respondents, however, agreed that corporate debtors should be allowed to file in a venue based on state of incorporation. Forty percent “strongly agreed” and 6 percent “agreed somewhat” on the issue. One percent did not know or had no opinion.

ABI members and members of the public were welcome to submit their response to the statement: “Venue of a bankruptcy case based on the state of incorporation of a corporate debtor should be eliminated.”

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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Consumer Bankruptcy Filings Increase 9 Percent in 2010

Contact: John Hartgen
703-894-5935
[email protected]

CONSUMER BANKRUPTCY FILINGS INCREASE 9 PERCENT IN 2010

January 3, 2011, Alexandria, Va.— U.S. consumer bankruptcies increased 9 percent nationwide in 2010 from the previous year, according to the American Bankruptcy Institute (ABI) relying on data from the National Bankruptcy Research Center (NBKRC). The data showed that the overall consumer filing total for the 2010 calendar year (Jan. 1 – Dec. 31, 2010) reached 1,530,078 compared to the 1,407,788 total consumer filings recorded during 2009. Annual consumer filings have increased each year since the Bankruptcy Abuse Prevention and Consumer Prevention Act was enacted in 2005.

“The steady climb of consumer filings notwithstanding the 2005 bankruptcy law restrictions demonstrate that families continue to turn to bankruptcy as a result of high debt burdens and stagnant income growth,” said ABI Executive Director Samuel J. Gerdano. “We expect that consumer filings will continue to rise in 2011.”

NBKRC’s data also showed that the 118,146 consumer filings recorded in December 2010 represented a 4 percent increase from the 113,274 filings in December 2009. The December 2010 consumer filings also represented a 3 percent increase from the November 2010 total of 114,587. Chapter 13 filings constituted 30 percent of all consumer cases in December, a slight increase from November.

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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.

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ABIs Newest Publication Helps Navigate the Conflicts Between Bankruptcy and Domestic Relations Law

Contact: John Hartgen
703-894-5935
[email protected]

ABI’S NEWEST PUBLICATION HELPS NAVIGATE THE CONFLICTS BETWEEN BANKRUPTCY AND DOMESTIC RELATIONS LAW

December 14, 2010, Alexandria, Va. — The American Bankruptcy Institute (ABI) has released When Worlds Collide: Bankruptcy and Domestic Relations Law, Fourth Edition, to provide state court judges and attorneys with a better understanding of how bankruptcy intersects with family law. Updated by Prof. Michaela M. White of Creighton University School of Law, When Worlds Collide discusses the increasing opportunity for conflict between the work of the state courts and the federal bankruptcy courts, and between state domestic relations law and bankruptcy law. Appendices feature relevant sections of the Bankruptcy Code, as well as a list of cases and articles on the issues discussed within the text. The book is used in ABI’s educational program for state court judges.

Members of the press interested in interviewing Prof. White should contact John Hartgen at 703-894-5935 or [email protected]. The softbound When Worlds Collide: Bankruptcy and Domestic Relations Law, Fourth Edition, is available for pre-order ($30 ABI members; $50 non-members) at ABI's Online Bookstore. Click here to order. http://www.abiworld.org/abistore.

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Winter Issue of the ABI Law Review Examines the SECs Role in the Bankruptcy Process Secured Lender Rights in 363 Sales Valuation in the Federal Bankruptcy Exemption Process

Contact: John Hartgen
703-894-5935
[email protected]

WINTER ISSUE OF THE ABI LAW REVIEW EXAMINES THE SEC’S ROLE IN THE BANKRUPTCY PROCESS, SECURED LENDER RIGHTS IN 363 SALES, VALUATION IN THE FEDERAL BANKRUPTCY EXEMPTION PROCESS

December 13, 2010, Alexandria, Va. — The American Bankruptcy Institute (ABI) Winter 2010 Law Review (Volume 18, No. 2) features 10 articles (including a series of articles on “The SEC in Bankruptcy: Past, Present and Future”) and one student note that examine a number of timely insolvency topics. Articles for “The SEC in Bankruptcy: Past, Present and Future” series were compiled from a symposium held in October sponsored by the ABI Law Review and the Center for Bankruptcy Studies at St. John's University School of Law. The symposium brought together prominent scholars and practitioners to discuss the SEC's past and present involvement with bankruptcy and to suggest approaches for the future. Articles in the series include:

“The SEC in Bankruptcy” by Profs. G. Ray Warner and Keith Sharfman of St. John's University School of Law (Queens, N.Y.).
'Welcome Back, SEC?' by Prof. David A. Skeel, Jr. of the University of Pennsylvania School of Law (Philadelphia).
'Present at the Creation: The SEC and the Origins of the Absolute Priority Rule' by Prof. Douglas G. Baird of the University of Chicago Law School.
'The SEC in Bankruptcy: Past and Present' by Alistaire Bambach of the Securities and Exchange Commission (Washington, D.C.).
'Rights Offerings as a Means of Financing Exits from Chapter 11' by Colin Diamond of White & Case (New York).
'Limiting the SEC’s Role in Bankruptcy' by Prof. Kelli A. Alces of the Florida State University College of Law (Tallahassee).
'Controlling the Market for Information in Reorganization' by Jonathan C. Lipson of Temple University School of Law (Philadelphia) and Christopher M. DiVirgilio of ??.

Additional Winter Issue articles include:

The Role of Valuation in Federal Bankruptcy Exemption Process: The Supreme Court Reads Schedule C' by Prof. David Gray Carlson of the Benjamin N. Cardozo School of Law (New York).
'Addressing Buyer’s or Seller’s Remorse: Pre-Bankruptcy Considerations Involving Post-Signing/Pre-Closing Strategic Transactions in a Volatile Economic Environment' by J. Eric Crupi of Hunton & Williams LLP (Washington, D.C.).
'Secured Lender Rights in 363 Sales and Related Issues of Lender Consent' by Brad B. Erens and David A. Hall of Jones Day (New York).

The LL.M. thesis, “Why Successor Liability Claims Are Not ‘Interests in Property’ under §363(f)” was written by Rachel P. Corcoran, who received her LL.M. in Bankruptcy this year from St. John's University School of Law, where she was the recipient of the ABI Merit Scholarship. Now an associate at LaMonica Herbst & Maniscalco, LLP, she was a member and executive notes and comments editor of the ABI Law Review, where she established the Bankruptcy Case Blog (stjohns.abiworld.org). Corcoran’s note explores whether successor-liability claims constitute interests in property for purposes of being sold free and clear through § 363(f) of the Bankruptcy Code.

ABI’s Law Review, published in conjunction with St. Johns University School of Law in Jamaica, N.Y., is among the most-cited and respected scholarly publications in the bankruptcy community. It has the largest circulation of any bankruptcy law review. Past issues of the Law Review have focused on a variety of timely insolvency topics, including distressed sectors, single-asset cases, consumer bankruptcy, the revised Article 9 of the Uniform Commercial Code and other topics.

Members of the press looking to obtain a copy of the Winter 2010 issue should contact John Hartgen at 703-894-5935 or [email protected].

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ABIs 29th Annual Spring Meeting Dodd-Frank Act Robo-Signer Controversy Ponzi Schemes Outlook for Financial Institutions and More

Contact: John Hartgen
703-894-5935
[email protected]

DODD-FRANK ACT, “ROBO-SIGNER” CONTROVERSY, PONZI SCHEMES AND THE OUTLOOK FOR FINANCIAL INSTITUTIONS AMONG THE TOPICS TO BE ADDRESSED AT ABI’S 29TH ANNUAL SPRING MEETING

January 21, 2011 Alexandria, Va. -- The American Bankruptcy Institute's (ABI) 29th Annual Spring Meeting is set to take place March 31-April 3, 2011, at the Gaylord National Resort and Convention Center near Washington, D.C. ABI’s largest conference features a number of educational programs to address a wide array of timely insolvency issues, and will offer 16 hours of CLE credit, including 3 hours of ethics.

The Annual Spring Meeting will also provide two keynotes that focus on U.S. fiscal reform and the global effects of Europe’s financial crisis. Former U.S. Senator Alan Simpson, who co-chairs the National Commission on Fiscal Responsibility and Reform, will provide a keynote on April 1 titled, 'The Moment of Truth for U.S. Fiscal Reform.” President Obama created the bipartisan Commission to address the nation's fiscal challenges, including identifying policies to achieve fiscal sustainability over the long run through recommendations designed to balance the budget by 2015, and reform entitlement spending. Additionally, Zanny Minton-Beddoes, the economic editor for The Economist, will deliver a keynote on April 2 titled, 'What’s to Fear from Europe’s Financial Crisis?” Former chief economist to the International Monetary Fund and a top expert on global financial issues, Minton-Beddoes will address the coming dangers for the U.S. economy from Europe’s continuing financial crisis.

The conference educational program sessions begin with ABI's Fifteenth Annual Great Debates, moderated by ABI's Vice President of Education James T. Markus of Markus Williams Young & Zimmerman LLC (Denver). In the first debate, “Plan support and lock-up agreements are enforceable and do not violate plan solicitation and disclosure rules,” Susan M. Freeman of Lewis and Roca LLP (Phoenix) will debate James S. Carr of Kelley Drye & Warren LLP (New York).

In the second debate, “Appointment of chief restructuring officers with plenary authority unlawfully circumvents Bankruptcy Code requirements to appoint chapter 11 trustees in appropriate circumstances,” U.S. Trustee Roberta A. DeAngelis (Philadelphia) will debate Martin J. Bienenstock of Dewey & LeBoeuf LLP (New York).

The third debate, “In individual chapter 11 cases, debtor’s counsel may not get paid or represent the estate in connection with disputes over exemptions and discharge,” will feature Bankruptcy Judge Mary Grace Diehl (N.D. Ga.; Atlanta) debating Bankruptcy Judge Eugene Wedoff (N.D. Ill.; Chicago).

Expert panels have been organized into concurrent sessions, allowing conference attendees to choose the ones that most interest them. Speakers include bankruptcy judges, accountants, attorneys, turnaround managers, law professors, trustees and others. Some of the featured panel sessions at the Annual Spring meeting include:

·      Dodd-Frank: Will It Work?

·      Recent Hot Plan Confirmation Issues

·      Chapter 11 Creditors’ Committees and Examiners: Are They Effective?

·      Espinosa and Beyond

·      Cutting-Edge Litigation Issues: Ponzi Schemes, the Return of Leveraged Buyouts, Valuation Disputes and More

·      “Robo-signing” Clients, Phantom Notaries, Foreclosure and Bankruptcy Mills, and Other Tales from the Dark Side

·      Financial Institutions: What Are They Thinking?

·      Macro Legal and Economic Issues Raised by the Enforceability of Residential Mortgages in Consumer Cases

In addition, ABI’s 20 committees will present educational programs on topics ranging from the new realities of asset sales to the coming wave of health care insolvencies. There will also be a Judicial Roundtable on the final day of the conference on April 3, discussing issues that divide the circuits in connection with significant consumer and commercial issues. To view the full list of sessions and speakers, please click here:
http://www.abiworld.org/ASM10/schedule.html

The conference also features a final night concert with recording artist LeAnn Rimes.

Press interested in attending the conference should contact John Hartgen at [email protected]. For more information about ABI’s 29th Annual Spring Meeting, please visit www.abiworld.org/ASM11.

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Law Students Encouraged to Take Part in ABIs Third Annual Writing Competition

Contact: John Hartgen
703-894-5935
[email protected]

LAW STUDENTS ENCOURAGED TO TAKE PART IN ABI'S THIRD ANNUAL WRITING COMPETITION

January 6, 2011, Alexandria, Va.- Law school students are encouraged to submit a paper now through March 1, for ABI’s Third Annual Bankruptcy Law Student Writing Competition. Sponsored by ABI’s Bankruptcy Litigation Committee, eligible submissions should focus on current issues regarding bankruptcy jurisdiction, bankruptcy litigation, or evidence issues in bankruptcy cases or proceedings. The paper may address business or consumer cases and may include matters such as bankruptcy sales, plan confirmation and other topics that involve jurisdiction, litigation or evidence in the bankruptcy courts. In order to participate, a student must have his or her paper reviewed by a law professor within the student’s own law school prior to submission. Winners of the competition will be announced in April.

The first-place writer will receive $1,000 cash, publication of the paper in the ABI Journal and a one-year membership in ABI. The second-place writer will receive a cash award of $750, publication of the paper in the ABI Bankruptcy Litigation Committee's quarterly newsletter and a one-year membership in ABI. The third-place writer will receive a cash award of $500, publication of the paper in the ABI Bankruptcy Litigation Committee's quarterly newsletter and a one-year membership in ABI. Past winners include Jason Lynch of Fordham Law School last year and Cullen Drescher of the William & Mary School of Law in ABI’s Inaugural Writing Competition in 2009. For more information, please go to http://papers.abiworld.org.

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Prof. Jean Braucher to Serve as Spring 2011 ABI Resident Scholar

Contact: John Hartgen
703-894-5935
[email protected]

PROFESSOR JEAN BRAUCHER TO SERVE AS SPRING 2011 ABI RESIDENT SCHOLAR

January 27, 2011, Alexandria, Va. — Prof. Jean Braucher will serve as the Robert M. Zinman ABI Resident Scholar for the spring 2011 semester. Since 1998, she has been the Roger C. Henderson Professor of Law at the University of Arizona’s James E. Rogers College of Law (Tucson). Prof. Braucher specializes in bankruptcy, contracts and commercial law. She will be based in ABI's Alexandria, Va., office, assisting ABI with its educational programming and in its role as the authoritative source of bankruptcy information for Congress, the media and the public.

A former member of the Board of Editors for ABI’s Law Review, Prof. Braucher’s recent publications include “Humpty Dumpty and the Foreclosure Crisis: Lessons from the Lackluster First Year of the Home Affordable Modification Program (HAMP)” (Arizona Law Review 2010), “A Law-in-Action Approach to Comparative Study of Repayment Forms of Consumer Bankruptcy” (Consumer Credit, Debt and Bankruptcy: Comparative and International Perspectives, 2009), and “A Guide to Interpretation of the 2005 Bankruptcy Law” (ABI Law Review, 2008). Prof. Braucher has also delivered many presentations on bankruptcy topics before professional and academic organizations.

Since 2007, Prof. Braucher has served as the Distinguished Scholar and Chair of the Wisconsin Contracts Project of the Institute for Legal Studies at the University of Wisconsin Law School. The Project is dedicated to a socio-legal approach to contract law and to revising the Contracts casebook by Stewart Macaulay et al., which Prof. Braucher has joined as an author. The first volume of Contracts: Law in Action (3rd Ed.) was published in 2010 and the second volume is forthcoming in 2011 (both from LexisNexis).

Prior to joining the faculty at the University of Arizona, Braucher served as the Gustavus H. Wald Research Professor of Law at the University of Cincinnati College of Law. She has also served as a visiting professor of law at Cornell Law School, University of Texas School of Law and Boston College Law School.

Prof. Braucher received her bachelor’s degree from Brown University in 1972 and graduated cum laude with her J.D. from Boston University School of Law in 1978.

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January Consumer Bankruptcy Filings Decrease 22 Percent from Previous Month

Contact: John Hartgen
703-894-5935
[email protected]

JANUARY CONSUMER BANKRUPTCY FILINGS DECREASE 22 PERCENT FROM PREVIOUS MONTH

February 1, 2011, Alexandria, Va.— January consumer bankruptcies decreased 22 percent nationwide from December 2010, according to the American Bankruptcy Institute (ABI), relying on data from the National Bankruptcy Research Center (NBKRC). The data showed that the overall consumer filing total for January reached 92,669, down from the 118,146 consumer filings recorded in December 2010. The January 2011 consumer filings represent the lowest monthly filing total since January 2009, when 88,773 filings were recorded.

'The decline in consumer filings in January represents a promising start to 2011 after years of expanding consumer debt and financial distress,' said ABI Executive Director Samuel J. Gerdano. 'Still, we anticipate that there will be nearly 1.6 million consumer bankruptcy filings by year end.'

The January 2011 consumer filing total also represented a 9 percent drop from January 2010 total of 102,254. Chapter 13 filings constituted 32 percent of all consumer cases in January, a slight increase from December.

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