Chapter 11: Purpose of Chapter 11

Web posted and Copyright © 1/12/98, American Bankruptcy Institute.

The following abstract summarizes the text of submissions made to the National Bankruptcy Review Commission. The abstract is organized by NBRC working group and topic.

The Final Report of the NBRC can be viewed on-line. To obtain a copy of any document shown below, contact the Center for Legislative Archives, Room 205, National Archives Building, Washington, D.C. 20408. The telephone number is 202/501-5350. Mr. R. Michael McReynolds, Deputy Director, will be able to assist with specific inquiries. (The NBRC documents will be housed at this location until June, 1999. Thereafter, the records will be transferred to the Center's archives in College Park, MD.)

ID Name Group Other Code
Problem Referenced Proposed Solutions
Leon S. Foreman Scholar-in-Residence - American College of Bankruptcy - Selective Professional Association of 7, 13 & 11 Attys; Accts; Professors; Judges * Gov't Officials (Approx. 300 Fellows).

Does Chapter 11 work Chapter 11 works reasonably well and does not require structural change. Its best attribute is its flexibility.
Hon. James E. Yacos Judiciary; United States Bankruptcy Court for the District of New Hampshire
The Bankruptcy Reform Act of 1978 deleted the prior insolvency requirement which had to be satisfied in order to qualify for filing a bankruptcy case under Chapter 11. There is no real suggestion in the legislative history as to the reason for this change. The Commission should consider whether or not there "should" be some threshold for Chapter 11 relief.
Commercial Law League of America Commercial Law League of America (CLLA)

The Commerical Law League of America believes that the following issues should be considered by the NBRC: What role does chapter 11 serve in the American economy How do parties use the system to reorder business relationships Can the benefits of job preservation and preservation of going-concern value be strengthened The CLLA believes that these issues should receive top priority (no additional details are provided).