Chapter 11: Serial Chapter 11 Filings

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
NBRC-0303 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, "but without a predisposition": Should limitations on serial chapter 11 filings be imposed If so, should serial filings be limited to consensual cases and liquidations The CLLA believes that these issues should receive top priority (no additional details are provided).
NBRC-0320 Robert M. Zinman, on behalf of the Bankruptcy Institute American Bankruptcy Institute ("ABI") Numerous position papers, memoranda and research material

The author attaches a white paper by David B. Wheeler entitled "The Effect and Impact of Successive or Serial Bankruptcy Filings." The paper summarizes and analyzes the cases addressing serial bankruptcy filings. The author also attaches a white paper by Timothy D. Moratzka and John E. Bloomer entitled "Who May Be a Debtor Under § 109(g)", which analyzes cases involving § 109(g) and its application to abusive multiple filings. Serial filings should be viewed skeptically by the court, but should not be prohibited. Abusive filings should be subject to sanctions (no additional details provided).
NBRC-0683 Don & Rita Gillespie Private Citizens Copy of article entitled "The bankruptcy epidemic" from "The Oregonian".

Homeowners angry over contractor who diverted funds for their house, then filed for bankruptcy, leaving them with subcontractor liens on their house. Their most specific concern seems to be multiple filers. Do not let anyone file bankruptcy more then once in a lifetime.
NBRC-0710 Franklin Feldman Attorney Exhibit A - a collection of letters from and to author concerning the enforcement of a Guarantee and legal representation of the company; and, Exhibit B - exchage of letters between author and Michael L. Cook concerning a request for legal fees and a threat of sanctions.

Author invested in company which had filed chapter 11 but which got a new president and CEO whom author thought could turn the company around. Author later became convinced that the CEO had acted in his own best interests, and not those of the company, when the company had to file chapter 11 two more times. Author petitioned for the appointment of a trustee or examiner and was denied, and has been actively involved in the legal procedings of the bankruptcy. Author writes with suggestions for changes in the bankruptcy code based on his experience. A Corporate Debtor should not be permitted to file a second Chapter 11 proceeding without a Trustee automatically being appointed in the second filing.