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Workshop on Bankruptcy

May 17–19, 2001
St. Louis, Missouri

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  Consumer Bankruptcy Course: Expanding Horizons

David A. Lander
Thompson Coburn, LLP, St. Louis, Missouri

Several years ago a survey was done that provided factual information about the range of bankruptcy courses that were being taught at that time. Here is a summary of that survey.

SUMMARY OF SURVEY RESULTS

On August 1, 1997, a survey form was sent to law schools located in the United States and Puerto Rico. Surveys were addressed to a faculty member who taught a bankruptcy course where that information was known, and otherwise to the Associate Dean. In addition, since a significant number of Bankruptcy Judges teach all or part of such a course, a survey form was also sent to each Bankruptcy Judge. The cover letter asked that the survey be returned by September 15th. Shortly after September 15th, a reminder was sent out.

As of November 7, 1997, surveys had been returned from law school teachers, Associate Deans or Bankruptcy Judges regarding 121 law schools.

Question 1: Basic Bankruptcy Courses

Ninety-eight schools reported that they taught one basic bankruptcy course.

Nineteen schools reported that they taught separate basic courses on Consumer and Business Bankruptcy.

One school reported that it taught no course in bankruptcy.

Question 2: Advanced Bankruptcy Courses

Fifty one schools reported that they had an advanced course that dealt primarily with Chapter 11.

Forty-nine schools reported that they had no advanced bankruptcy courses.

Seven schools reported that they had an advanced course that dealt primarily with Consumer Issues.

Twenty-five schools reported that they taught an advanced course that was not a Chapter 11 or a Consumer course. These included courses on current developments, bankruptcy tax, bankruptcy policy and courses that combined Chapter 11 and Chapter 13.

Question 3: Use of People Who Are Not Full-Time Faculty Members

Twenty-three schools reported that they used Judges or lawyers who are not full-time faculty members to teach an occasional class.

Fifty-nine schools reported that Judges or lawyers who are not full-time faculty members have major responsibility for one or more of the bankruptcy courses.

Thirty-seven schools reported that all courses are fully taught by full-time faculty members.

Information regarding Selected Courses with a consumer emphasis

  1. Georgia State:
    Beginning Consumer Bankruptcy
    Taught by Professor Marjorie Girth; used Warren and Westbrook

  2. University of Pennsylvania
    Advanced Consumer Course- taught some years ago by Henry Sommers and Elizabeth Warren

  3. New York Law School
    Outline to be distributed at the session

  4. St. Louis University
    Consumer Bankruptcy in the context of consumer finance (see attached outline)

Materials for Consumer Bankruptcy in the context of consumer Finance.
Taught by David Lander at St. Louis University

PART ONE
Understanding Consumer Borrowing and Lending

  1. Car loans

    how much is there ? growth charts
    who are the players and how much does each of them have?
    is there securitization and if so, what are the effects
    how does the industry operate and has that changed over the past few years?

  2. Home Loans

    first mortgages

    how much is there? Growth charts
    who are the players and how much does each of them have
    role of fanniemae and other government related entities and marketmakers
    is there securitization and if so, what are the effects

    second and subsequent mortgages, including debt consolidation home mortgages

    how much is there? Growth charts
    who are the players and how much does each of them have ?
    is there securitization and if so, what are the effects?

  3. loans secured by other consumer property

    how much is there? Growth charts
    who are the players and how much does each of them have?
    Ftc rules et al

  4. unsecured loans

    credit cards

    how much is there? Growth charts
    who are the players and what is the level and history of concentration
    is there securitization and if so, what are the effects?
    How does the industry operate?

    OPTIONAL payday loans, small loans, loans other than the above

Restrictions imposed by the State or Federal Government on lenders or credit providers

Interest rate restrictions
Disclosure issues
Enforcement restrictions

PART TWO

Debt Forgiveness or Restructuring and how they deal with car loans, home loans, loans secured by other consumer property and unsecured loans.

Consumer bankruptcy
Overview:

Chapter 7 vs. Chapter 13

Secured debt:
Reaffirmation
Redemption
Restructure in Chapter 13

Unsecured debt
Nondischargeability
Commitment of future income to fund the chapter 13 plan

  1. Chapter 7

    car loans

    reaffirmation
    redemption
    relief from stay
    keeping a car without reaffirming when the debt is not in default

    home loans

    reinstatement

    loans secured by other consumer property
    lien avoidance

    unsecured loans
    non dischargeable debts

  2. Chapter 13

    car loans
    authority to restructure

    home loans
    limitations on restructuring debts secured solely by lien on real estate
    authority to restructure the deficiency over a period of time

    loans secured by other consumer property

    unsecured loans

    non dischargeable debts

  3. The Debt Counseling Industry
    unsecured debt
    car loans
    home loans
    loans secured by other consumer property

    Reading:

    Surviving Debt: National Consumer Law Center

    Excerpts from The Business Lawyer annual reviews of consumer finance developments

    Supplement on Consumer Bankruptcy and Chapter 7 and Chapter 13 to be prepared by David Lander

    Various Statutes

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