This paper is inspired directly by two articles coauthored by Professors Bebchuk and Fried, which comprehensively questioned the efficiency of the bankruptcy priority awarded to secured claims. It starts by pointing out the following efficiency benefit of such priority largely unmentioned in the legal literature, including the Bebchuk and Fried articles: the priority of secured debts undermines borrowers’ incentives to pursue excessively risky investment projects under certain circumstances.

The characteristics of bankrupt households (such as income and asset levels) vary widely across  states. This paper asks whether these variations can be attributed to state exemption laws or state garnishment laws. Using a new household-level dataset, the author finds that high exemption levels encourage high asset households to file for bankruptcy while high garnishment rates encourage low income households to file for bankruptcy.

Summary:

Bankruptcy Code Section 502(b)(6) caps a landlord's claim against a debtor-tenant. Courts disagree on whether the provision caps damages for past breaches of non-rent lease covenants, such as a tenant's contractual obligation to maintain and repair the premises. This Article contends that 502(b)(6) caps only those damages authorized under applicable nonbankruptcy law that are triggered by the termination of the lease, regardless of whether termination occurs before or after the petition date.

In response to objections causing wasteful, unnecessary and inappropriate delay in the bankruptcy sale context, this article concludes that bankruptcy courts should employ a preliminary injunction-like standard for evaluating objections to bankruptcy sales.   Employing a strict, preliminary injunction-like standard should decrease the possibility that parties-in-interest will introduce an improvident delay into the bankruptcy sale process.  By preventing inappropriate delay, courts will ensure that parties receive an appropriate amou

1. An intervening change in controlling law;
2. New evidence not available at trial; or
3. A clear error of law or prevent manifest injustice.