Bankruptcy law is exceedingly complex yet interesting. It is complex because the law has to banlance many competing interests when a business entity falls into financial trouble: the entity itself, its employees, its secured creditors, its general unsecured creditors, its owners, its suppliers, and the federal government (the IRS). It is interesting because bankruptcy constitutes either the end or the springboard for rebirth for a business entity, or individual for that matter.
Bankruptcy lawyers are probably doing pretty well now. Given the bad and worsening economic conditions, more and more business and individuals will fall behind on their debts, thus in need of bankruptcy protection, either liquidation or reorganization. If the reorganization route is taken, legal counsel plays a very pivotal role during the entire reorganization process.
Since I just wrote a post about Sanlu’s bankruptcy, I figured that I should share a paper that I wrote for my comparative law class on China’s new Enterprise Bankruptcy Law. The paper is titled–Secured Creditors in Corporate Reorganization: A Comparative View of the United States and China. If interested, please email me.