Bankruptcy Class Website

Prof. Scott B. Ehrlich
Spring 2015



Welcome to the Bankruptcy Class Website

This web site provides updated information about the course and upcoming assignments. It also contains links to many of the handouts and materials used in the course, as well as links to helpful bankruptcy-related sites on the web.  All materials on this web site for use only by students enrolled in Bankruptcy at California Western School of Law.  Students in the class may copy these materials to their own computers.  However, these materials may not be transferred to others or posted on publicly accessible web sites. SOME DOCUMENTS ARE PASSWORD PROTECTED.  You will receive the password by email.


Assignments

Assignments for the entire course are contained in the first few pages of the Photocopied Assignments & Readings, or on line via this link: Assignments for the Semester. You may also check on the specific assignments already covered in class via this link: Past Assignments.  Make sure you always visit this part of the website a day or two before class to check for changes.

 

1.            Special Drafting Assignment – Relief from the Automatic Stay

a.    Due Date: Friday, March 12th, 4:00 pm

b.    The Motion for Relief From Stay Assignment

2.            Tuesday, March 3:

a.    Avoidance of Unperfected Transfers:

                                  i.    Read In re Pye at pages 276-279 and McCannon v. Marston at pages 280-284.

b.    Avoidance of transfers if state law allows avoidance: Part IV(K).

                                  i.    §544(b); read the notes and Moore v. Bay at pages 285-286.

c.    Avoiding Pre-Petition Preferential Transfers (“Voidable Preferences”): Part IV (L)(1)-(4):

                                  i.    Read the introductory materials at pages 287.

                                 ii.    §101(12) ("debt"), §101(5) ("claim"), §101(32) ("insolvent"), §101(31) ("insider") & §101(54) ("transfer").

                                iii.    Pay close attention to §101(54).

                               iv.    §547(e), §547(b), §547(f) & §551. Review U.C.C. §9-308(a); §9-309(1); §9-310(a) & (b); §9-313(a) at pages 271-275.

                                v.    Read Barnhill v. Johnson at pages 287-291.

                               vi.    Read Barash v. Public Finance Corporation at 292-295 and In re Shurtleff, Inc. at pages 300-307.

                              vii.    Hypotheticals 1-10 ("Voidable Preference Hypotheticals") at pages 308-312.

3.            Thursday, March 5

a.    Exceptions to Preferential Transfers: Part IV (L)(5)-(8)

                                  i.    BAPCA Changes To §547(c) Exceptions: Read page 313-314.

                                 ii.    §547(c)(7) - Consumer transfers: Read §547(c)(7).

                                iii.    §547(c)(1) - Substantially contemporaneous: Matter of Tressler at pages 315-318..

                               iv.    §547(c)(2) - Ordinary Course of business: Read the remainder of the opinion in Barash v. Public Finance Corp. at pages 295-299; Union Bank v. Wolas at pages 319-324.

                                v.    Read carefully §547(c)(3)-(c)(9).

                               vi.    Answer hypotheticals 11-24 at pages 308-312.

                              vii.    §551.

b.    Insidious transfers to guarantors/co-signors:

                                  i.    Read the notes on Deprizio at page 326.

                                 ii.    Read §550(c).

4.            Tuesday, March 10

a.    Fraudulent Conveyances: Parts IV (M)(1)-(3). 

                                  i.    Read the notes at page 328 and Twyne's Case at page 329.

                                 ii.    Read the excerpts from the Uniform Fraudulent Transfer Act at pages 330-333 (concentrate on §4 and §5).

                                iii.    §548: Concentrate on §548(a) and (c).

                               iv.    §550(a).

                                v.    Do the Fraudulent Conveyance Hypotheticals at pages 334-335 and review the answers in the Appendix.

                               vi.    Read In re Hulm at pages 336-339 and In re BFP at pages 340-352.

                              vii.    Read the following: 

1.    Bernard Madoff Ponzi Scheme “Clawback” letter

2.    Recovery of about $400 million from the N.Y. Mets

5.            Thursday, March 12

a.    Collection of Avoided Transfers: Part IV (N)(1)-(2).

                                  i.    §§548(c); 549(a) & (c); 550(a), (b), (c) & (e)(1); 542(c)

                                ii.    Review "Protecting Transferors and Transferees" at pages 167-168.

b.    Recap of the Trustee’s Avoidance Powers: Part IV (O)(1). 

                                  i.    Answer the Property of the Estate hypotheticals at pages 353-354. Carefully do the hypos and test your mastery of §541, §542, §544-§548, §549 and §550.

c.    Protecting secured creditors: V (A)(1) & (2).

                                  i.    Review §§362(d); 361; 363(d) & (e). Read pages 355-359.

                                 ii.    §§101(37)("lien"), (36)("judicial lien"), (50)("security agreement") & (51)("security interest"); 506(a) & (b); 363(e), (f) & (k); 522(c); 552; 722; 725; 554; 362(c). Rule 3012.

d.    Strip down of liens:

                                  i.    In re Dewsnup at pages 360-364.

                                ii.    Answer the hypothetical at page 365.

6.            Tuesday, March 17

a.    Liquidating the Estate: Recap

                                  i.    §363(a), (b), (c) & (k). Rule 6004. Peruse 28 U.S.C. §959.

                                 ii.    Read "Liquidation of the Estate" at pages 366-368. Read §363(f) very carefully.

                                iii.    Read Matter of Stroud Wholesale, Inc. at pages 369-373.

b.    Allowance and Payment of Claims: Part V(C)(1)-(3):

                                  i.    §§501(a),(b),(c); 502(a), (b)(1), (b)(2), (b)(5), (b)(6), (b)(7), (c), (f), (g); 101(5)("claim"). Rules 3001(a)-(d), 3002 (a),(b) & (c), 3003(a)-(b)(1); Rule 3007. Forms 9A, 9C & 10.

                                 ii.    Read page 374.

                                iii.    Answer the hypotheticals at pages 375-376.

7.            Thursday, March 19:

a.    Priority in Distribution: Part V(D)(1)-(4)

                                  i.    §§726(a) & (b); 507(a)(1) through (a)(8) and (a)(10); 101(14A)("domestic support obligation"); 507(b); 503; 365(d)(3); 724(b). What is the function of 507(b)?

                                 ii.    Read page 391.

                                iii.    Answer the hypotheticals at pages 392-393.

                               iv.    Subordination

1.    §510. In re Stirling Homex Corp., at pages 394-401 (read this case carefully)

                                v.    Peruse §553(a).

                               vi.    Make sure you answer the “Priorities Hypothetical” & Response: Response to Priorities Hypo

b.    How attorneys get paid:

                                  i.    Read In re Hessinger & Associates, Attorneys; Lamie v. U.S. Trustee and the notes at pages 377-390.

8.            Tuesday, March 24:

a.    Entitlement to a Discharge & Reaffirmations: Part V(E)(1) and (2).

                                  i.    §§727(a)(1)-(12); 727(b) & (c); 1141(d); 1328(a). Rule 4004(a) & (c), Rule 4005; Official Form 18. See also, 18 U.S.C. §152, §153 and §157. Briefly scan §110.

                                 ii.    Read pages 402-407.

                                iii.    Read In re Reed at pages 408-413..

b.    Effect of a Discharge and Reaffirmation

                                  i.    §§727(b); 524(a)(1) & (a)(2); 524(c)-(f); 525; 362(c)(2)

9.            Thursday, March 26:

a.    Exceptions to the Discharge: Part V(E)(3)

                                  i.    §§524(d); 523(a)(1) - (a)(10) and (13)-(15); 523(b); 523(c) & (d); 101(14A)("domestic support obligation"). Rule 4007.

                                 ii.    Read pages 414-418.

                                iii.    Read In re Kovacs at pages 419-424.

b.    Introduction to the Chapter 13 Plan and The Super-Discharge: Part VI (A)(1)-(2)

                                  i.    Read "Bankruptcy Reorganizations" at pages 425-431; "Benefits of Chapter 13" at page 432.

                                 ii.    Answer the hypothetical at page 433.

10.          Tuesday, March 31:

a.    Chapter 13 Requirements Part VI (B) and (C).

                                  i.    §§1301(a); 1302(b); 1303; 1306; 348(d); 1321; 1322(a); 1322(b); 1324; 1325; 1326; 1327.

                                 ii.    The requirement of "good faith": §1325(a)(3) & (b); Read In re Warren, at pages 434-443.

b.    The Chapter 13 “super” discharge:

                                  i.    §§1328(a), (b), (c) & (d).

c.    Introduction to Chapter 11 Business Reorganizations:

                                  i.    Review "Bankruptcy Reorganizations" at pages 425-431.

                                 ii.    Read page 444.

11.          Thursday, April 2:

a.    Proposing, Voting Upon and Confirming the Plan

                                  i.    Proposing the plan; Parties: §§1121; 1102(a)(1); 1102(b)(1); 1103(c); 1104(a); 1106(a)(1)-(3); 1107(a); 1108.

                                 ii.    Contents of the plan: §§1123(a)(1)-(a)(5); 1123(b)(1)-(b)(2).

                                iii.    Voting on the plan: §§1126(a), (c), (f) & (g); 1124; 1125(a)(1), (b), (d) & (e); 1122.

                               iv.    Confirmation of the plan: §§1129(a)(1)-(a)(3), (a)(7)-(a)(9); 1129(b). (Do not try too hard to decipher §1129(b)(2). It will be put in simple terms in class.)

                                v.    Effect of the plan. §1141(b), (c) & (d).


The Bankruptcy Code, Rules & Forms

 

The Bankruptcy Code, Rules & Forms:

1.    Full-Text Version (Edited by Prof. Ehrlich. Signed voucher from purchased materials required for personal electronic copy)

2.    On-line U.S. Bankruptcy Code at Cornell University: Bankruptcy Code

3.    Federal Rules of Bankruptcy Procedure on-line

 

Official Bankruptcy Forms:

1.    U.S. Government Links to Official Forms

 

Local Rules:

1.    Local Rules of the Southern District of California Bankruptcy Court

2.    Standing Administration Guidelines for Chapter 7

3.    Local Order 180-A regarding “Rights and Responsibilities of Chapter 7 Debtors and Their Attorney” 


Links

1.    Bankruptcy Petition Drafting Assignment – Due February 20th.

2.    Ehrlich, Materials for Students Who Have Not Taken Secured Transactions

3.    The Cornell University Bankruptcy Website (contains excellent resources and links)

4.    The Cornell University UCC Article 9 Website.

5.    The Administrative Office of the U.S. Courts maintains a site with information and official forms.

6.    The U.S. Trustee Program (contains helpful information)

7.    U.S. Trustee Means Testing Page

8.    U.S. Bankruptcy Court for the Southern District of California maintains an excellent web site with information and forms.

9.    California Judicial Council Forms

10.  The State of California Codes  


Questions & Answers

 

This section will contain questions posed by students during the course of the semester - - and answers posted by Prof. Ehrlich. To post a message, click here: sbe@cwsl.edu. Your name will not be posted here, just the question & answer.

 

 

Contact Prof. Ehrlich

 

E-mail: sbe@cwsl.edu
Tel: 619-525-1416
Office: Room 313, Administration Building (225 Cedar St.)

Office Hours

Tuesday

1:30-3:15

Wednesday

1:30-3:15

Thursday

1:30-3:15

Other Times:

I’m often available, please knock.