Center for Contract and Economic Organization
Program in the Law and Economics of Capital Markets
It is a commonplace, but nonetheless true: the study of bankruptcy has attained a new respectability in American law schools. After years of modest enrollments and few genuine scholarly contributions, bankruptcy courses are now fully subscribed and many young academics are turning their attention to the technical complexities and conceptual underpinnings of modern bankruptcy law. A number of factors contribute to this new-found glamour. Most obviously, the enactment of the new Bankruptcy Code has fueled scholarly interest in reporting its modifications and changes and in exploring its theoretical unity. Simultaneously, there has been increasing resort to the bankruptcy process to resolve vexing conflicts between the societal interest in reducing the costs of business failure and the allegedly overriding interests in preserving collective bargaining agreements, compensating victims of defective products, and insuring the removal of toxic waste and other environmental hazards. Finally, and most significant, the bankruptcy process vividly illustrates the tensions between the various maximization and distributional norms that underlie modern theories of legal regulation.
Robert E. Scott,
Through Bankruptcy with the Creditors' Bargain Heuristic,
U. Chi. L. Rev.
Available at: https://scholarship.law.columbia.edu/faculty_scholarship/311