Bankruptcy Reform Study Project - ABI Preference Survey Two (Practitioners)

ABI Preference Survey No. 2
Practitioners

1. To what extent do the preference laws accomplish the objective of equitably redistributing monies paid to creditors by an insolvent debtor shortly before a bankruptcy filing?

		Frequency	Valid Percent
Valid	Not at all	13	3.7%
	A little	91	25.6%
	Somewhat	132	37.1%
	Pretty Much	98	27.5%
	A great deal	22	6.2%
	Total	356	100%
Missing		0
Total		356

2. To what extent do the preference laws accomplish the objective of helping a debtor deal with its creditors prior to a bankruptcy filing?

		Frequency	Valid Percent
Valid	Not at all	102	28.7%
	A little	109	30.6%
	Somewhat	94	26.4%
	Pretty Much	39	11.0%
	A great deal	12	3.4%
	Total	356	100%
Missing		0
Total		356

3a. How often are distributions to unsecured creditors in bankruptcy cases increased as a result of recoveries in preference actions?

		Frequency	Valid Percent
Valid	Never	2	0.6%
	Rarely	131	36.9%
	Sometimes	161	45.4%
	Frequently	60	16.9%
	Always	1	0.3%
	Total	355	100%
Missing		1
Total		356

b. If you circled 2 [Rarely], 3 [Sometimes], 4 [Frequently] or 5 [Always] in question 3a (above), to what extent are recoveries increased?

		Frequency	Valid Percent
Valid	Minimally	209	59.5%
	Moderately	132	37.6%
	A great deal	10	2.8%
	Total	351	100%
Missing		5
Total		356

4. How often are preference causes of action utilized as a means of obtaining working capital through: a. using cash recovered from avoidable preferences?

		Frequency	Valid Percent
Valid	Never	85	24.1%
	Rarely	188	53.3%
	Sometimes	69	19.5%
	Frequently	11	3.1%
	Total	353	100%
Missing		3
Total		356

b. granting liens on preference claims as collateral for the extension of post-petition financing?

		Frequency	Valid Percent
Valid	Never	89	25.4%
	Rarely	184	52.4%
	Sometimes	65	18.5%
	Frequently	13	3.7%
	Total	351	100%
Missing		5
Total		356

5. How often are you positively influenced to accept or pursue employment in a bankruptcy case because of the existence of potential preference litigation if you are to be retained as a professional by: a. a debtor?

		Frequency	Valid Percent
Valid	Not Applicable	47	13.2%
	Never	130	36.6%
	Rarely	117	33.0%
	Sometimes	47	13.2%
	Frequently	14	3.9%
	Total	355	100%
Missing		1
Total		356

b. a creditors' committee?

		Frequency	Valid Percent
Valid	Not Applicable	41	11.5%
	Never	71	19.9%
	Rarely	98	27.5%
	Sometimes	124	34.8%
	Frequently	22	6.2%
	Total	356	100%
Missing		0
Total		356

c. a trustee?

		Frequency	Valid Percent
Valid	Not Applicable	69	19.4%
	Never	48	13.5%
	Rarely	46	13.0%
	Sometimes	119	33.5%
	Frequently	73	20.6%
	Total	355	100%
Missing		1
Total		356

6. How often is preference litigation commenced in: a. Chapter 7 cases?

		Frequency	Valid Percent
Valid	No Knowledge	18	5.1%
	Never	4	1.1%
	Rarely	81	22.8%
	Sometimes	142	39.9%
	Frequently	111	31.2%
	Total	356	100%
Missing		0
Total		356

b. Chapter 11 cases pre-confirmation?

		Frequency	Valid Percent
Valid	No Knowledge	12	3.4%
	Never	19	5.4%
	Rarely	139	39.3%
	Sometimes	147	41.5%
	Frequently	37	10.5%
	Total	354	100%
Missing		2
Total		356

c. Chapter 11 cases post-confirmation?

		Frequency	Valid Percent
Valid	No Knowledge	14	4.0%
	Never	13	3.7%
	Rarely	70	19.9%
	Sometimes	190	54.1%
	Frequently	64	18.2%
	Total	351	100%
Missing		5
Total		356

d. Chapter 13 cases?

		Frequency	Valid Percent
Valid	No Knowledge	141	40.1%
	Never	82	23.3%
	Rarely	116	33.0%
	Sometimes	13	3.7%
	Frequently	0	0%
	Total	352	100%
Missing		4
Total		356

7. In business cases, how often a. is preference litigation commenced?

		Frequency	Valid Percent
Valid	No Knowledge	8	2.3%
	Never	0	0%
	Rarely	42	11.8%
	Sometimes	197	55.5%
	Frequently	108	30.4%
	Total	355	100%
Missing		1
Total		356

b. are sums recovered from preferences, net of costs of collection?

		Frequency	Valid Percent
Valid	No Knowledge	9	2.5%
	Never	1	0.3%
	Rarely	59	16.6%
	Sometimes	189	53.1%
	Frequently	98	27.1%
	Total	356	100%
Missing		0
Total		356

c. do net preference recoveries increase payments to unsecured creditors?

		Frequency	Valid Percent
Valid	No Knowledge	8	2.2%
	Never	2	0.6%
	Rarely	133	37.4%
	Sometimes	164	46.1%
	Frequently	49	13.8%
	Total	356	100%
Missing		0
Total		356

8. In individual cases, how often: a. is preference litigation commenced?

		Frequency	Valid Percent
Valid	No Knowledge	54	15.2%
	Never	10	2.8%
	Rarely	161	45.2%
	Sometimes	118	33.1%
	Frequently	13	3.7%
	Total	356	100%
Missing		0
Total		356

b. are sums recovered from preferences, net of costs of collection?

		Frequency	Valid Percent
Valid	No Knowledge	60	16.9%
	Never	9	2.5%
	Rarely	153	43.0%
	Sometimes	99	27.8%
	Frequently	35	9.8%
	Total	356	100%
Missing		0
Total		356

c. do net preference recoveries increase payments to unsecured creditors?

		Frequency	Valid Percent
Valid	No Knowledge	60	16.9%
	Never	17	4.8%
	Rarely	167	47.0%
	Sometimes	91	25.6%
	Frequently	20	5.6%
	Total	355	100%
Missing		1
Total		356

9. How often are preference claims: a. settled by payment following a pre-complaint demand letter?

		Frequency	Valid Percent
Valid	Never	10	2.8%
	Rarely	109	30.6%
	Sometimes	182	51.1%
	Frequently	55	15.4%
	Total	356	100%
Missing		0
Total		356

b. abandoned following a pre-complaint demand letter?

		Frequency	Valid Percent
Valid	Never	11	3.1%
	Rarely	111	31.2%
	Sometimes	198	55.6%
	Frequently	36	10.1%
	Total	356	100%
Missing		0
Total		356

c. settled by payment following the filing of a complaint, but before trial?

		Frequency	Valid Percent
Valid	Never	1	0.3%
	Rarely	9	2.5%
	Sometimes	118	33.2%
	Frequently	227	63.9%
	Total	355	100%
Missing		1
Total		356

d. dismissed following the filing of a complaint?

		Frequency	Valid Percent
Valid	Never	8	2.3%
	Rarely	187	52.9%
	Sometimes	145	40.8%
	Frequently	15	4.2%
	Total	355	100%
Missing		1
Total		356

e. tried to judgment?

		Frequency	Valid Percent
Valid	Never	7	2.0%
	Rarely	221	62.3%
	Sometimes	118	33.2%
	Frequently	9	2.5%
	Total	355	100%
Missing		1
Total		356

10. How often does the 90-day preference period affect the decision on when to file a bankruptcy case: a. when you are representing a debtor?

		Frequency	Valid Percent
Valid	Not Applicable	38	10.7%
	Never	6	1.7%
	Rarely	49	13.8%
	Sometimes	158	44.4%
	Frequently	105	29.5%
	Total	356	100%
Missing		0
Total		356

b. when you are filing an involuntary petition for creditors?

		Frequency	Valid Percent
Valid	Not Applicable	61	17.1%
	Never	14	3.9%
	Rarely	27	7.6%
	Sometimes	88	24.7%
	Frequently	166	46.6%
	Total	356	100%
Missing		0
Total		356

11a. In what percentage of preference actions are each of the following defenses raised ?

		Mean Percent
Valid	Contemporaneous exchange (§ 547(c)(1))	46.885%
	Ordinary course of business (§ 547(c)(2))	73.387%
	Purchase money security interest (§ 547(c)(3))	16.263%
	Subsequent new value (§ 547(c)(4))	49.162%
	Floating lien (§ 547(c)(5))	14.898%

In what percentage of preference actions do each of the following defenses have some merit?

		Mean Percent
Valid	Contemporaneous exchange (§ 547(c)(1))	34.628%
	Ordinary course of business (§ 547(c)(2))	57.763%
	Purchase money security interest (§ 547(c)(3))	20.234%
	Subsequent new value (§ 547(c)(4))	40.551%
	Floating lien (§ 547(c)(5))	16.125%

Which, if any, of the following defenses to preference actions should be eliminated?

		Frequency Yes	Percent Yes
Valid	Contemporaneous exchange (§ 547(c)(1))	8	2.2%
	Ordinary course of business (§ 547(c)(2))	38	10.7%
	Purchase money security interest (§ 547(c)(3))	9	2.5%
	Subsequent new value (§ 547(c)(4))	36	10.1%
	Floating lien (§ 547(c)(5))	50	14.0%

13. What, if any, defenses to preference actions should be added to the existing statute. [Specify.]

[Responses not compiled.]

14. Should the ordinary course of business defense be available with regard to payments on long-term debt?

		Frequency	Valid Percent
Valid	No	62	17.5%
	Yes	293	82.5%
	Total	355	100%
Missing		1
Total		356

15. Does the party bringing a preference action normally sue for an amount: a. net of new value?

		Frequency	Valid Percent
Valid	No	279	78.8%
	Yes	75	21.2%
	Total	354	100%
Missing		2
Total		356

b. net of ordinary course of business payments?

		Frequency	Valid Percent
Valid	No	296	83.9%
	Yes	57	16.1%
	Total	353	100%
Missing		3
Total		356

16. When you represent the party bringing a preference action: a. how often do you conduct a subsequent new value defense analysis prior to filing a suit?

		Frequency	Valid Percent
Valid	Not Applicable	47	13.5%
	Never	14	4.0%
	Rarely	43	12.3%
	Sometimes	57	16.3%
	Frequently	103	29.5%
	Always	85	24.4%
	Total	349	100%
Missing		7
Total		356

b. how often do you conduct an ordinary course of business defense analysis prior to filing a suit?

		Frequency	Valid Percent
Valid	Not Applicable	46	13.2%
	Never	8	2.3%
	Rarely	37	10.6%
	Sometimes	62	17.8%
	Frequently	112	32.1%
	Always	84	24.1%
	Total	349	100%
Missing		7
Total		356

17. What is the typical percentage applied to settle preference claims, regardless of whether valid defenses exist?

Mean Percent

58.512%

18a. What, if any, is the minimum dollar amount of preference claims that must be in controversy for it to be financially worthwhile to prosecute a preference action?

		Frequency	Valid Percent
Valid	0 to $500	4	1.1%
	$501 to $1,000	10	2.8%
	$1,001 to $2,000	44	12.4%
	$2,001 to $5,000	121	34.1%
	$5,001 to $10,000s	91	25.6%
	Greater than $10,000	85	23.9%
	Total	355	100%
Missing		1
Total		356

b. What, if any, is the minimum dollar amount of preference claims that must be in controversy for it to be financially worthwhile to defend a preference action?

		Frequency	Valid Percent
Valid	0 to $500	3	0.8%
	$501 to $1,000	12	3.4%
	$1,001 to $2,000	39	11.0%
	$2,001 to $5,000	113	32.0%
	$5,001 to $10,000s	112	31.7%
	Greater than $10,000	74	21.0%
	Total	353	100%
Missing		3
Total		356

19. The proceeds of preference actions should be permitted to be distributed: a. to the debtor for operations or funding a reorganization plan.

		Frequency	Valid Percent
Valid	Definitely Not	36	10.3%
	Probably Not	71	20.2%
	Probably Yes	139	39.6%
	Definitely Yes	105	29.9%
	Total	351	100%
Missing		5
Total		356

b. to secured creditors (if authorized by court order).

		Frequency	Valid Percent
Valid	Definitely Not	88	25.4%
	Probably Not	119	34.3%
	Probably Yes	106	30.5%
	Definitely Yes	34	9.8%
	Total	347	100%
Missing		9
Total		356

c. to retained professionals for allowed fees and expenses.

		Frequency	Valid Percent
Valid	Definitely Not	19	5.4%
	Probably Not	34	9.7%
	Probably Yes	147	41.9%
	Definitely Yes	151	43.0%
	Total	351	100%
Missing		5
Total		356

d. only to creditors similarly situated to the creditor from which the recovery was received.

		Frequency	Valid Percent
Valid	Definitely Not	125	36.1%
	Probably Not	106	30.6%
	Probably Yes	75	21.7%
	Definitely Yes	40	11.6%
	Total	346	100%
Missing		10
Total		356

e. to creditors in order of the priority of their claims.

		Frequency	Valid Percent
Valid	Definitely Not	13	3.7%
	Probably Not	41	11.7%
	Probably Yes	125	35.8%
	Definitely Yes	170	48.7%
	Total	349	100%
Missing		7
Total		356

f. in any manner provided in the Chapter 11 plan.

		Frequency	Valid Percent
Valid	Definitely Not	37	10.6%
	Probably Not	77	22.1%
	Probably Yes	129	37.1%
	Definitely Yes	105	30.2%
	Total	348	100%
Missing		8
Total		356

20. Should the following entities be able to obtain a lien on preference actions or recoveries? a. A post-petition lender

		Frequency	Valid Percent
Valid	No	127	35.9%
	Yes	227	64.1%
	Total	354	100%
Missing		2
Total		356

b. A pre-petition creditor as part of its adequate protection

		Frequency	Valid Percent
Valid	No	201	56.8%
	Yes	153	43.2%
	Total	354	100%
Missing		2
Total		356

c. A post-confirmation lender

		Frequency	Valid Percent
Valid	No	148	41.8%
	Yes	206	58.2%
	Total	354	100%
Missing		2
Total		356

21a. The period within which transfers to insider creditors should be recoverable as preferences is:

		Frequency	Valid Percent
Valid	30 days before bankruptcy	2	0.6%
	60 days before bankruptcy	1	0.3%
	90 days before bankruptcy	20	5.6%
	120 days before bankruptcy	5	1.4%
	180 days before bankruptcy	58	16.4%
	1 year before bankruptcy	176	49.7%
	anytime after the debtor becomes insolvent	92	26.0%
	Total	354	100%
Missing		2
Total		356

b. The period within which transfers to noninsider creditors should be recoverable as preferences is:

		Frequency	Valid Percent
Valid	30 days before bankruptcy	24	6.8%
	60 days before bankruptcy	47	13.3%
	90 days before bankruptcy	197	55.6%
	120 days before bankruptcy	40	11.3%
	180 days before bankruptcy	27	7.6%
	1 year before bankruptcy	11	3.1%
	anytime after the debtor becomes insolvent	8	2.3%
	Total	354	100%
Missing		2
Total		356

22. The following question seeks your opinion as to the types of payments that should be repaid to a bankruptcy estate. For each of the following fact patterns, assume that (i) you do not represent a party to the preference action; (ii) if the amount paid to the creditor were repaid to the bankruptcy estate, payment to the unsecured creditors would significantly increase; and (iii) the amount paid to the creditor allows it to receive a significantly higher percentage of its claim than other creditors. Each fact pattern also asks you to respond assuming first, that the creditor is an insider, and second, that the creditor is not an insider. Please indicate with respect to each of the following fact patterns whether a payment made to a creditor should be repaid to the bankruptcy estate. a. The creditor obtains payment within 90 days prior to a bankruptcy and after filing suit against the debtor, where (i) the creditor is an insider, and (ii) the creditor is not an insider.

	CREDITOR IS AN INSIDER			CREDITOR IS NOT AN INSIDER
		Frequency	Valid Percent		Frequency	Valid Percent
Valid	Definitely Not	8	2.3%	Definitely Not	12	3.4%
	Probably Not	7	2.0%	Probably Not	43	12.3%
	Probably Yes	69	19.7%	Probably Yes	121	34.7%
	Definitely Yes	266	76.0%	Definitely Yes	173	49.6%
	Total	350	100%	Total	349	100%
Missing		6			7
Total		356			356

b. The creditor obtains payment within 90 days prior to a bankruptcy and after threatening to file suit, where (i) the creditor is an insider, and (ii) the creditor is not an insider.

	CREDITOR IS AN INSIDER			CREDITOR IS NOT AN INSIDER
		Frequency	Valid Percent		Frequency	Valid Percent
Valid	Definitely Not	6	1.7%	Definitely Not	9	2.6%
	Probably Not	8	2.3%	Probably Not	40	11.4%
	Probably Yes	71	20.3%	Probably Yes	127	36.3%
	Definitely Yes	265	75.7%	Definitely Yes	174	49.7%
	Total	350	100%	Total	350	100%
Missing		6			6
Total		356			356

c. The creditor obtains payment within 90 days prior to a bankruptcy and after sending one or more written delinquency notices to the debtor, where (i) the creditor is an insider, and (ii) the creditor is not an insider.

	CREDITOR IS AN INSIDER			CREDITOR IS NOT AN INSIDER
		Frequency	Valid Percent		Frequency	Valid Percent
Valid	Definitely Not	5	1.4%	Definitely Not	14	4.0%
	Probably Not	18	5.2%	Probably Not	56	16.1%
	Probably Yes	76	21.8%	Probably Yes	126	36.2%
	Definitely Yes	249	71.6%	Definitely Yes	152	43.7%
	Total	348	100%	Total	348	100%
Missing		8			8
Total		356			356

d. The creditor obtains payment within 90 days prior to a bankruptcy and after making one or more phone calls to the debtor requesting payment, where (i) the creditor is an insider, and (ii) the creditor is not an insider.

	CREDITOR IS AN INSIDER			CREDITOR IS NOT AN INSIDER
		Frequency	Valid Percent		Frequency	Valid Percent
Valid	Definitely Not	7	2.0%	Definitely Not	16	4.6%
	Probably Not	18	9.2%	Probably Not	72	20.7%
	Probably Yes	81	23.3%	Probably Yes	118	33.9%
	Definitely Yes	242	69.5%	Definitely Yes	142	40.8%
	Total	348	100%	Total	348	100%
Missing		8			8
Total		356			356

e. The creditor obtains payment within 90 days prior to a bankruptcy, based on a request by the debtor to accept late payment, where (i) the creditor is an insider, and (ii) the creditor is not an insider.

	CREDITOR IS AN INSIDER			CREDITOR IS NOT AN INSIDER
		Frequency	Valid Percent		Frequency	Valid Percent
Valid	Definitely Not	14	4.0%	Definitely Not	41	11.7%
	Probably Not	48	13.7%	Probably Not	134	38.3%
	Probably Yes	110	31.4%	Probably Yes	97	27.7%
	Definitely Yes	178	50.9%	Definitely Yes	78	22.3%
	Total	350	100%	Total	350	100%
Missing		6			6
Total		356			356

f. Without any overt collection efforts by the creditor, the debtor makes payment to the creditor within 90 days prior to a bankruptcy, pursuant to an out-of-court restructuring that treats certain creditors better than others, where (i) the creditor is an insider, and (ii) the creditor is not an insider.

	CREDITOR IS AN INSIDER			CREDITOR IS NOT AN INSIDER
		Frequency	Valid Percent		Frequency	Valid Percent
Valid	Definitely Not	15	4.3%	Definitely Not	43	12.3%
	Probably Not	26	7.4%	Probably Not	88	25.1%
	Probably Yes	94	26.9%	Probably Yes	112	32.0%
	Definitely Yes	215	61.4%	Definitely Yes	107	30.6%
	Total	350	100%	Total	350	100%
Missing		6			6
Total		356			356

g. Without any overt collection efforts by the creditor, the debtor makes payment to the creditor within 90 days prior to a bankruptcy because the debtor desires to treat that creditor more favorably than other creditors, where (i) the creditor is an insider, and (ii) the creditor is not an insider.

	CREDITOR IS AN INSIDER			CREDITOR IS NOT AN INSIDER
		Frequency	Valid Percent		Frequency	Valid Percent
Valid	Definitely Not	11	3.1%	Definitely Not	20	5.7%
	Probably Not	6	1.7%	Probably Not	51	14.6%
	Probably Yes	65	18.6%	Probably Yes	109	31.1%
	Definitely Yes	268	76.6%	Definitely Yes	170	48.6%
	Total	350	100%	Total	350	100%
Missing		6			6
Total		356			356

23. Should the following transactions be considered the same as the payment of money for purposes of determining whether the transaction should be set aside as a preference? a. The debtor returns goods sold by the creditor.

		Frequency	Valid Percent
Valid	No	237	67.5%
	Yes	114	32.5%
	Total	351	100%
Missing		5
Total		356

b. The debtor transfers goods to the creditor not originally sold by that creditor.

		Frequency	Valid Percent
Valid	No	18	5.1%
	Yes	333	94.9%
	Total	351	100%
Missing		5
Total		356

c. The debtor grants the creditor a security interest in the debtor's assets.

		Frequency	Valid Percent
Valid	No	26	7.5%
	Yes	322	92.5%
	Total	348	100%
Missing		8
Total		356

d. The debtor grants the creditor a mortgage on the debtor's real estate.

		Frequency	Valid Percent
Valid	No	29	8.3%
	Yes	319	91.7%
	Total	348	100%
Missing		8
Total		356

e. The court imposes a lien after a judgment is obtained by the creditor.

		Frequency	Valid Percent
Valid	No	95	27.4%
	Yes	252	72.6%
	Total	347	100%
Missing		9
Total		356

f. The court imposes a lien upon initiation of a suit by the creditor and prior to judgment.

		Frequency	Valid Percent
Valid	No	57	16.5%
	Yes	289	83.5%
	Total	346	100%
Missing		10
Total		356

24. Should an increase in collateral that increases the amount recoverable by a secured creditor within a specified period prior to a bankruptcy be recoverable as a preference if: a. the debtor grants the secured creditor additional collateral to induce the secured creditor to lend additional money to the debtor?

		Frequency	Valid Percent
Valid	No	303	86.6%
	Yes	47	13.4%
	Total	350	100%
Missing		6
Total		356

b. the debtor grants the secured creditor additional collateral to induce the secured creditor to grant favorable concessions (e.g., reduction in interest rate, extension of maturity date, etc.) to the debtor?

		Frequency	Valid Percent
Valid	No	259	74.4%
	Yes	89	25.6%
	Total	348	100%
Missing		8
Total		356

c. the amount of the collateral increases as a result of additional goods sold on credit and unpaid for as of the date of the bankruptcy?

		Frequency	Valid Percent
Valid	No	211	60.6%
	Yes	137	39.4%
	Total	348	100%
Missing		8
Total		356

25a. The current preference law has eight defenses or exceptions. Should the preference law be revised to avoid or set aside all transfers by a debtor on account of antecedent debts within a specific period of time before the filing of a bankruptcy without regard to defenses?

		Frequency	Valid Percent
Valid	No opinion	9	2.5%
	No	326	91.8%
	Yes	20	5.6%
	Total	355	100%
Missing		1
Total		356

b. If the current law were revised to avoid or set aside all transfers by a debtor within a specified period before the filing of a bankruptcy without regard to defenses, the avoidance period should be:

		Frequency	Valid Percent
Valid	one week or less	66	19.1%
	30 days.	153	44.2%
	60 days.	58	16.8%
	90 days.	52	15.0%
	more than 90 days	17	4.9%
	Total	356	100%
Missing		0
Total		356

26. The date of transfer for purposes of determining whether a security interest is a preference should be:

		Frequency	Valid Percent
Valid	the date the security interest was granted, regardless of perfection date	37	10.5%
	the date the security interest was granted only if perfected within 10 days	42	11.9%
	the date the security interest was granted only if perfected within 20 days	45	12.8%
	the date the security interest was granted only if perfected within 30 days	20	5.7%
	the date the security interest was granted only if perfected before the bankruptcy filing	19	5.4%
	the date the security interest was deemed perfected under state law	174	49.4%
	Other	1	0.3%
	No opinion	14	4.0%
	Total	352	100%
Missing		4
Total		356

27. Do the preference laws penalize creditors who provide financial accommodations to or otherwise work with a debtor in attempting to resolve its financial problems?

		Frequency	Valid Percent
Valid	No opinion	26	7.3%
	No	111	31.4%
	Yes	217	61.3%
	Total	354	100%
Missing		2
Total		356

28. Preference actions should only be brought where the amount in issue is:

		Frequency	Valid Percent
Valid	any amount, without a minimum	39	11.0%
	greater than $600	8	2.3%
	greater than $1,000	98	27.8%
	greater than $5,000	125	35.4%
	greater than $10,000	52	14.7%
	greater than $25,000	15	4.2%
	other	16	4.2%
	Total	353	100%
Missing		3
Total		356

29. Would a law requiring the losing party in preference litigation to pay the counsel fees of the winning party be a benefit or detriment to the bankruptcy process?

		Frequency	Valid Percent
Valid	Be a benefit	139	39.0%
	Be a detriment	174	48.9%
	Make no difference	28	7.9%
	No opinion	15	4.2%
	Total	356	100%
Missing		0
Total		356

30. What one specific area of existing preference law most troubles you, and what should be done to resolve this issue? [Specify.]

[Responses not compiled.] 31. How would you best describe the nature of your current involvement with bankruptcy matters?

		Frequency	Valid Percent
Valid	Accountant	11	3.1%
	Lawyer	323	91.0%
	Trustee	16	4.5%
	Turnaround consultant	1	0.3%
	Other	4	1.1%
	Total	355	100%
Missing		1
Total		356

32. How many years have you spent working on bankruptcy matters

		Frequency	Valid Percent
Valid	0 to 5	9	2.5%
	5 to 10	58	16.3%
	11 to 14	90	25.4%
	15 or more	198	55.8%
	Total	355	100%
Missing		1
Total		356

33. Approximately what percent of your current bankruptcy involvement is acting on behalf of each of the following categories?

		Mean Percent
Valid	Secured creditors	32.067%
	Unsecured creditors	16.480%
	Debtors	35.792%
	Trustees	21.513%
	Official committees	12.607%
	Governmental entities	5.170%
	Equity holders	3.434%
	Bond holders	1.842%
	Indenture trustees	1.472%

34. Approximately what percent of your bankruptcy involvement deals with each of the following categories?

		Mean Percent
Valid	Individual Chapter 7	18.148%
	Business Chapter 7	13.720%
	Individual Chapter 11	9.631%
	Business Chapter 11	45.242%
	Individual Chapter 13	12.919%
	Business Chapter 13	6.149%
	Chapter 9	0.500%
	Chapter 12	3.311%
	Out-of-court	15.134%

35a. How many preference claims have you been involved in prosecuting (whether or not suit was actually brought)?

		Frequency	Valid Percent
Valid	None	33	9.3%
	1 to 5	40	11.2%
	6 to 10	42	11.8%
	11 to 14	16	4.5%
	15 or more	225	63.2%
	Total	356	100%
Missing		0
Total		356

b. How many preference lawsuits have you been involved in prosecuting (whether or not the suit proceeded to judgment)?

		Frequency	Valid Percent
Valid	None	43	12.1%
	1 to 5	60	16.9%
	6 to 10	42	11.8%
	11 to 14	15	4.2%
	15 or more	196	55.1%
	Total	356	100%
Missing		0
Total		356

c. How many preference claims have you been involved in defending (whether or not suit was actually brought)?

		Frequency	Valid Percent
Valid	None	12	3.4%
	1 to 5	55	15.4%
	6 to 10	62	17.4%
	11 to 14	30	8.4%
	15 or more	197	55.3%
	Total	356	100%
Missing		0
Total		356

d. How many preference lawsuits have you been involved in defending (whether or not the suit proceeded to judgment)?

		Frequency	Valid Percent
Valid	None	18	5.1%
	1 to 5	69	19.5%
	6 to 10	73	20.7%
	11 to 14	25	7.1%
	15 or more	168	47.6%
	Total	353	100%
Missing		3
Total		356

36. In what state or states are you currently involved with bankruptcy matters?

State	Count	Percent of Responses	Percent of Cases
Alabama	8	0.8%	2.3%
Alaska	3	0.3%	0.8%
Arizona	20	1.9%	5.6%
Arkansas	5	0.5%	1.4%
California	65	6.1%	18.4%
Colorado	8	0.8%	2.3%
Connecticut	7	0.7%	2.0%
Delaware	29	2.7%	8.2%
D. Columbia	7	0.7%	2.0%
Florida	41	3.9%	11.6%
Georgia	12	1.1%	3.4%
Hawaii	2	0.2%	0.6%
Idaho	3	0.3%	0.8%
Illinois	28	2.6%	7.9%
Indiana	14	1.3%	4.0%
Iowa	4	0.4%	1.1%
Kansas	5	0.5%	1.4%
Kentucky	8	0.8%	2.3%
Louisiana	12	1.1%	3.4%
Maine	6	0.6%	1.7%
Maryland	11	1.0%	3.1%
Massachusetts	17	1.6%	4.8%
Michigan	13	1.2%	3.7%
Minnesota	7	0.7%	2.0%
Mississippi	2	0.2%	0.6%
Missouri	11	1.0%	3.1%
Montana	0	0.0%	0.0%
Nebraska	3	0.3%	0.8%
Nevada	13	1.2%	3.7%
New Hampshire	8	0.8%	2.3%
New Jersey	24	2.3%	6.8%
New Mexico	8	0.8%	2.3%
New York	48	4.5%	13.6%
N. Carolina	14	1.3%	4.0%
N. Dakota	0	0.0%	0.0%
Ohio	17	1.6%	4.8%
Oklahoma	5	0.5%	1.4%
Oregon	14	1.3%	4.0%
Pennsylvania	19	1.8%	5.4%
Puerto Rico	2	0.2%	0.6%
Rhode Island	1	0.1%	0.3%
S. Carolina	7	0.7%	2.0%
S. Dakota	0	0.0%	0.0%
Tennessee	13	1.2%	3.7%
Texas	46	4.3%	13.0%
Utah	4	0.4%	1.1%
Vermont	3	0.3%	0.8%
Virginia	11	1.0%	3.1%
Washington	20	1.9%	5.6%
W. Virginia	3	0.3%	0.8%
Wisconsin	6	0.6%	1.7%
Wyoming	1	0.1%	0.3%
Virgin Islands	0	0.0%	0.0%

Valid Cases	354
Missing Cases	2
Total	356

37. What is the principal federal district in which you handle bankruptcy matters?

District	Frequency	Percent
Alabama ND	5	1.4%
Alabama SD	1	0.3%
Alaska	3	0.8%
Arizona	5	1.4%
Arkansas ED	4	1.1%
California ND	6	1.7%
California CD	28	7.9%
California ED	6	1.7%
California SD	6	1.7%
Colorado	5	1.4%
Connecticut	2	0.6%
Delaware	4	1.1%
D. Columbia	2	0.6%
Florida ND	3	0.8%
Florida MD	15	4.2%
Florida SD	7	2.0%
Georgia ND	3	0.8%
Hawaii	1	0.3%
Idaho	2	0.6%
Illinois ND	16	4.5%
Illinois CD	2	0.6%
Illinois SD	1	0.3%
Indiana ND	4	1.1%
Indiana SD	7	2.0%
Kansas	3	0.8%
Kentucky WD	4	1.1%
Louisiana ED	1	0.3%
Louisiana MD	2	0.6%
Louisiana WD	1	0.3%
Maine	5	1.4%
Maryland	6	1.7%
Massachusetts	14	3.9%
Michigan ED	5	1.4%
Michigan WD	3	0.8%
Minnesota	5	1.4%
Mississippi SD	1	0.3%
Missouri ED	7	2.0%
Nebraska	3	0.8%
Nevada	3	0.8%
New Hampshire	3	0.8%
New Jersey	9	2.5%
New Mexico	4	1.1%
New York ND	1	0.3%
New York SD	14	3.9%
New York ED	9	2.5%
New York WD	1	0.3%
N. Carolina ED	5	1.4%
N. Carolina MD	3	0.8%
N. Carolina WD	3	0.8%
Ohio ND	8	2.2%
Ohio SD	2	0.6%
Oklahoma ND	1	0.3%
Oregon	10	2.8%
Pennsylvania ED	5	1.4%
Pennsylvania MD	1	0.3%
Pennsylvania WD	4	1.1%
S. Carolina	3	0.8%
Tennessee ED	3	0.8%
Tennessee MD	3	0.8%
Tennessee WD	2	0.6%
Texas ND	12	3.4%
Texas SD	10	2.8%
Texas ED	1	0.3%
Texas WD	9	2.5%
Utah	1	0.3%
Virginia ED	3	0.8%
Virginia WD	1	0.3%
Washington ED	2	0.6%
Washington WD	8	2.2%
W. Virginia SD	2	0.6%
Wisconsin ED	1	0.3%
Wisconsin WD	2	0.6%

Total Valid	347	98%
Total Missing	7	2%
Total	354	100%

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ABI Preference Survey No. 2 Practitioners

ABI Preference Survey No. 2
Practitioners