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…)

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…)

Well, Benjamin Franklin always said it best and with a unique fervor, “There is nothing certain in life except death and taxes.”  However, in the topsey turvey “Alice through the Looking Glass” world of Chapter 11 bankruptcy only one thing was certain.  At least for a while. (more…)

For many lawyers practicing bankruptcy law, the operation has become routine – “mechanized” is perhaps the more apt description.  Particularly in the area of consumer bankruptcy (Chapter 7 and 13), there are a lot of forms being generated behind the scenes because software has made it easier to spin out what’s needed to secure a filing at rocket speed.  However, the world of Chapter 11 bankruptcy has remained a bastion of creative lawyering notwithstanding the improvement in technology.

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