Bankruptcy is not a process that should be feared by the American people – or by General Motors.  Sometimes it acts as a grim reaper.  Sometimes it has the power of the Phoenix allowing failed businesses to rise from their ashes.  But always it is the great equalizer which is precisely what Congress intended.

So why are GM and the country so afraid?  The answer appears to be very straight forward – loss of the company and the attendant jobs.  That’s arguably never a good thing. (more…)

On Tuesday, March 3, 2009 the “Patent Reform Act of 2009” was introduced in Congress. This is the latest effort to pass this legislation, which has been knocking around Washington for years, into law. The 2008 version died in the Senate last year. It is thought by many observers to have a better chance of becoming law this time around.  In fact the bill was approved on April 2, 2009, in a 15-4 vote of the Senate Judiciary Committee. The bill now moves to the Senate floor. (more…)

As a bankruptcy attorney and former lawyer for the Feds, I feel compelled to point out the drawbacks of the current bailout to GM and other entities which might seek Chapter 11 protection.  The bankruptcy laws afford no special protection to taxpayers in a bailout situation.  As such, the massive outlay advanced by the American people may never get fully repaid in a Chapter 11 proceeding which is highly problematic. (more…)