The (Il)legitimacy of Bankruptcies for the Benefit of Secured Creditors

The desirability of secured creditor bankruptcies is undoubtedly a polarized issue. On one hand, some argue that secured creditor bankruptcies should be dismissed outright. On the other, others assert that secured creditor bankruptcies should not be automatically dismissed because they can be beneficial in certain circumstances. This Article explores this tension by initializing a dialog between the advocates and the critics of secured creditor bankruptcies. Through this dialectic approach, this Article concludes that, even though secured creditor bankruptcies may have the capacity for mischief, they should still be permitted so long as they are governed by carefully drawn limitations.

The full text of this Article is available to download as a PDF.