One Thing Wrong With ABC Laws: § 543(d)(2) Of The Bankruptcy Code (Global Safety Labs)

Problematic? (Photo by Marilyn Swanson) By: Donald L Swanson “[T]he bankruptcy court— . . . (2) shall excuse compliance . . . if . . . an assignee for the benefit of the debtor’s creditors . . . was appointed or took possession more than 120 days before the date of the filing of the petition,... Continue Reading →

Judicial Supervision Over ABCs: A Problem

Supervision? (Photo by Marilyn Swanson) By: Donald L Swanson Congress must be allowed “to fashion a modern bankruptcy system which places the basic rudiments of the bankruptcy process in the hands of an expert equitable tribunal.” --from Granfinanciera, S.A. v. Nordberg, 492 U.S. 33, 94 (1989) (Blackmun dissent, emphasis added). Justice Blackmun had a point—back in 1989—that... Continue Reading →

The Common Law Of ABCs Is Effective: And Statutory Limitations On ABCs Are Bad Policy

Temptation? (Photo by Marilyn Swanson) By: Donald L Swanson Assignment for benefit of creditors (“ABC”) laws are, historically, a debtor remedy.  ABC laws are a voluntary debtor tool for shutting down and winding up the debtor’s failed business. Ancient History ABC laws began under the common law, back in merrie olde England, arising out of the... Continue Reading →

A History of ABC Laws in Illinois

An Illinois city (Photo by Marilyn Swanson) By: Donald L Swanson An assignment for benefit of creditor (“ABC”) is, historically, a nonjudicial process for administering the affairs of a failed business. ABC laws are rooted in English common law and predate enactment of federal bankruptcy laws in the U.S.[Fn. 1] An ABC is made by a... Continue Reading →

A 1909 Perspective On Bankruptcy Laws v. Similar State Laws (From Samuel Williston)

Food for thought? (Photo by Marilyn Swanson) By: Donald L Swanson Every now and then we get a glimpse into the past . . . that casts light on issues and events of today. One such glimpse is a Harvard Law Review article from 1909: “The Effect of a National Bankruptcy Law upon State Laws.”[Fn. 1].... Continue Reading →

Re-Envisioning Old ABC Laws: A Deed Of Trust Model

Re-envisioning? (Photo by Marilyn Swanson) By: Donald L Swanson State laws on assignments for benefit of creditors (“ABC”) have been around for a long time.  But times have changed over the last half-century.  Specifically, the bankruptcy alternative has changed dramatically: from a harsh remedy under the Bankruptcy Act of 1898;to the current Bankruptcy Code, with its... Continue Reading →

Bankruptcy Code v. ABC Laws: Why Sherwood Partners v. Lycos’s Dissent Is Wrong

Preempting? (photo by Marilyn Swanson) By: Donald L Swanson The interface between federal bankruptcy law and similar state laws has a long history, going back to at least 1819, when the U.S. Supreme Court rules that a state insolvency law: may discharge a person from debtor’s prison; butmay not discharge that person’s debt.[Fn. 1] A more... Continue Reading →

Uniform Law Commission: New Study Committee On Assignments For Benefit Of Creditors

Dale G. Higer is an attorney and a long-time Commissioner for the State of Idaho on the Uniform Law Commission.  His newest role is Chair of the Commission’s newly-formed Study Committee on Assignments for Benefit of Creditors. What follows is Mr. Higer’s report on the Commission and on the work of the newly formed Study... Continue Reading →

Assignment For Benefit Of Creditors: A Uniform Law Is Needed

A lack of uniformity? (photo by Marilyn Swanson) By: Donald L Swanson It’s time for a uniform law on the subject of assignment for benefit of creditors. Description Assignment for benefit of creditors laws are commonly known by the acrostic “ABC Laws”--for obvious reasons.  Such laws are a tool for owners of a distressed business in... Continue Reading →

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