Final Abstract Summary

The following abstract summarizes the text of submissions made to the National Bankruptcy Review Commission. The abstract is organized by NBRC working group and topic.

Return to the ABI Abstract Table of Contents.

The Final Report of the NBRC can be viewed on-line. To obtain a copy of any document shown below, contact the Center for Legislative Archives, Room 205, National Archives Building, Washington, D.C. 20408. The telephone number is 202/501-5350. Mr. R. Michael McReynolds, Deputy Director, will be able to assist with specific inquiries. (The NBRC documents will be housed at this location until June, 1999. Thereafter, the records will be transferred to the Center's archives in College Park, MD.)

**Final Abstract Summary**
ID	Name	Group	Other	Code Sec	Cross Ref	Problem Referenced	Proposed Solutions
NBRC- 0301	National Bankruptcy Conference	National Bankruptcy Conference (NBC), Bernard Shapiro, Chair				NBC believes that the following issue merits study by the NBRC: whether bankruptcy judges should be given Article III status.	NBC believes that bankruptcy judges should be given Article III status in order to decrease the amount of judicical time spent deciding which courts can decide which lawsuits. Also, the Bankruptcy Code should be amended to make clear that all matters relating to the bankruptcy case may be decided in the bankruptcy court. This proposal does not suggest that those currently serving as bankruptcy judges automatically be given Article III status.
NBRC- 0301	National Bankruptcy Conference	National Bankruptcy Conference (NBC), Bernard Shapiro, Chair				NBC believes that the following issue merits study by the NBRC: all aspects of bankruptcy adminstration, including whether the U.S. Trustee's duties should be more clearly delineated and provided with the capacity to fulfilll those duties.	NBRC should conduct an updated review of the U.S. Trustee system, and examine the effects of its 1986 expansion.
NBRC- 0301	National Bankruptcy Conference	National Bankruptcy Conference (NBC), Bernard Shapiro, Chair		105		NBC believes that the following issues merit study by the NBRC: whether there are modifications that should be made to Chapter 11 to streamline the process, reduce the costs and deal with cases of minimal creditor interest without damaging the beneficial rehabilitative effect of business reorganizations, and whether the bankruptcy judge should be given a more active case management role as contemplated by the 1994 amendments to § 105.	None.
NBRC- 0301	National Bankruptcy Conference	National Bankruptcy Conference (NBC), Bernard Shapiro, Chair				NBC believes that the following issue merits study by the NBRC: whether the law of partnerships should be "totally reconsidered."	NBC concludes that partnership law should be "reconsidered." (No additional details are provided. The NBC Report, however, which discusses this position more thoroughly, has been "refined" and will be available to the NBRC.)
NBRC- 0301	National Bankruptcy Conference	National Bankruptcy Conference (NBC), Bernard Shapiro, Chair				NBC believes that the following issue merits study by the NBRC: whether the law of executory contracts should be "totally reconsidered."	NBC concludes that executory contract law should be "reconsidered." (No additional details are provided. The NBC Report, however, which discusses this position more thoroughly, has been "refined" and will be available to the NBRC.)
NBRC- 0301	National Bankruptcy Conference	National Bankruptcy Conference (NBC), Bernard Shapiro, Chair				NBC believes that the following issue merits study by the NBRC: whether the law of partnerships should be "totally reconsidered."	NBC concludes that partnership law should be "reconsidered." (No additional details are provided. The NBC Report, however, which discusses this position more thoroughly, has been "refined" and will be available to the NBRC.)
NBRC- 0301	National Bankruptcy Conference	National Bankruptcy Conference (NBC), Bernard Shapiro, Chair		28 U.S.C. § 2075		NBC believes that the following issue merits study by the NBRC: whether 28 U.S.C. § 2075 should be amended to provide that "the Supreme Court rule making power can be used to promulgate rules of practice and procedure incosistent with the procedural provisions of the Code." This was the law prior to adoption of the 1978 Bakruptcy Code, and the law worked well.	Serious consideration should be given to restoring the Supreme Court's authority over all aspects of bankrupty practice and procedure.
NBRC- 0301	National Bankruptcy Conference	National Bankruptcy Conference (NBC), Bernard Shapiro, Chair				NBC believes that the following issue merits study by the NBRC: whether a substantial effort should be made to repeal the special purpose legislation that has been engrafted upon the Code since 1978. This legislation contains arcane provisions that have resulted in "privileged treatement for a few."	Special purpose legislation should be repealed in order to promote the goals of equality of distribution, rehabilitation, and protection of the discharge.
NBRC- 0301	National Bankruptcy Conference	National Bankruptcy Conference (NBC), Bernard Shapiro, Chair				NBC believes that the following issue merits study by the NBRC: whether bankruptcy appeals should be made directly to the Court of Appeals. The current two-step appellate process is a waste of judicial resources and needlessly delays the resolution of bankruptcy cases.	Bankruptcy system should be restructured so that appeals are made directly to the Court of Appeals.
NBRC- 0302	Brian L. Mc Donnell	President, Navy Federal Credit Union		521		Bankruptcy is increasingly being perceived as an "easy way out" for debtors seeking to avoid responsibility for their actions. In addition, many people no longer consider bankruptcy to be a financial stigma. It is imperative that bankruptcy procedures be revised to discourage financial irresponsibility in today's highly leveraged personal economic environment.	Amend § 521 to require debtors who have not completed a personal financial management course in the previous 180 days to complete appropriate financial counseling and training within 45 days after filing a petition, without which the petition will be automatically dismissed.
NBRC- 0302	Brian L. Mc Donnell	President, Navy Federal Credit Union		301, 707		Bankruptcy is increasingly being perceived as an "easy way out" for debtors seeking to avoid responsibility for their actions. In addition, many people no longer consider bankruptcy to be a financial stigma. It is imperative that bankruptcy procedures be revised to discourage financial irresponsibility in today's highly leveraged personal economic environment.	Revise §§ 301 and 707 to provide that a petition must receive full consideration under chapter 13 before establishing eligibility for consideration under chapter 7. Alternatively, revise § 707 to permit creditors to enter a motion for dismissal of a chapter 7 filing where the debtor's earns sufficeint income to permit repayment of debts under a chapter 13 plan.
NBRC- 0302	Brian L. Mc Donnell	President, Navy Federal Credit Union		1322		Bankruptcy is increasingly being perceived as an "easy way out" for debtors seeking to avoid responsibility for their actions. In addition, many people no longer consider bankruptcy to be a financial stigma. It is imperative that bankruptcy procedures be revised to discourage financial irresponsibility in today's highly leveraged personal economic environment.	Modify § 1322 to extend the chapter 13 plan to provide for payments over a period of six years and, for cause, to permit the court to approve a longer reasonable period without statutory limitaiton.
NBRC- 0302	Brian L. Mc Donnell	President, Navy Federal Credit Union				Bankruptcy is increasingly being perceived as an "easy way out" for debtors seeking to avoid responsibility for their actions. In addition, many people no longer consider bankruptcy to be a financial stigma. It is imperative that bankruptcy procedures be revised to discourage financial irresponsibility in today's highly leveraged personal economic environment.	Amend the Code to establish a nationwide database to discourage abuse through multiple filings in multiple jurisdictions.
NBRC- 0302	Brian L. Mc Donnell	President, Navy Federal Credit Union		342, 521		Bankruptcy is increasingly being perceived as an "easy way out" for debtors seeking to avoid responsibility for their actions. In addition, many people no longer consider bankruptcy to be a financial stigma. Bankruptcy filings represent significant time and money burdens for creditors and the courts, the costs of which are often passed on to customers of the creditors in the form of higher prices. It is imperative that bankruptcy procedures be revised to discourage financial irresponsibility in today's highly leveraged personal economic environment. One way of reducing the administrative burden of bankruptcy filings would be to require improved documentation.	Sections 342 and 521 and Rule 2002 should be amended to provide for improved documentation that would more clearly establish the debtor's finances, creditors, and intent. Suggested statutory provisions are provided.
NBRC- 0302	Brian L. Mc Donnell	President, Navy Federal Credit Union		362, 1301		Bankruptcy is increasingly being perceived as an "easy way out" for debtors seeking to avoid responsibility for their actions. In addition, many people no longer consider bankruptcy to be a financial stigma. Bankruptcy filings represent significant time and money burdens for creditors and the courts, the costs of which are often passed on to customers of the creditors in the form of higher prices. It is imperative that bankruptcy procedures be revised to discourage financial irresponsibility in today's highly leveraged personal economic environment. One way of reducing the administrative burden of bankruptcy filings would be to enhance the cost-effectiveness of bankruptcy proceedings.	To enhance the "cost-effectiveness" of bankruptcy proceedings, § 362 should be amended to establish an exemption to the automaitc stay in cases where: (1) joint debt is involved, and one or more joint debtors files a subsequent petition for relief within 120 days of a prior filing by an another joint debtor; (2) debtors wish to voluntarily convey collateral to debtors; (3) a chapter 13 debtor falls more than 60 days behind scheduled repayments; and (4) creditors will continue accepting payments on loans for collateral that dentors intend to retain. Also, to increase the "cost-effectiveness" of bankruptcy proceedings, § 1301 should be amended to repeal those provisions that prohibit collection from a nonbankrupt co-debtor until the automatic stay is lifted.
NBRC- 0302	Brian L. Mc Donnell	President, Navy Federal Credit Union		523, 727	Rules 4004 and 4005	Bankruptcy is increasingly being perceived as an "easy way out" for debtors seeking to avoid responsibility for their actions. In addition, many people no longer consider bankruptcy to be a financial stigma. Bankruptcy filings represent significant time and money burdens for creditors and the courts, the costs of which are often passed on to customers of the creditors in the form of higher prices. It is imperative that bankruptcy procedures be revised to discourage financial irresponsibility in today's highly leveraged personal economic environment. One way of reducing the administrative burden of bankruptcy filings would be to enhance the "cost-effectiveness" of bankruptcy proceedings.	To enhance the "cost-effectiveness" of bankruptcy proceedings, § 523 should be amended to: (1) simplify the requirements and procedures for creditors to show false pretenses in connection with loans obtained within 60 days (author recommends 180 days) of the order for relief; (2) extend the period of obtaining a loan for luxury items from 60 days to 180 days of the order for relief and redusing the thresholds for cash advances and purchases of luxury items from $1000 to $100; and (3) stipulate that costs of a successful dischargeability challenge by the creditor will be borne by the debtor (§ 523(d)). Section 727 and Rule 4005 should be amended to stipulate that costs of a creditor's successful objection to the discharge will be borne by the debtor.
NBRC- 0302	Brian L. Mc Donnell	President, Navy Federal Credit Union		522		Bankruptcy is increasingly being perceived as an "easy way out" for debtors seeking to avoid responsibility for their actions. In addition, many people no longer consider bankruptcy to be a financial stigma. Bankruptcy filings represent significant time and money burdens for creditors and the courts, the costs of which are often passed on to customers of the creditors in the form of higher prices. It is imperative that bankruptcy procedures be revised to discourage financial irresponsibility in today's highly leveraged personal economic environment. To reduce the administrative burden of bankruptcy proceedings, fair and equitable guidelines should be established.	In the interest of establishing fair and equitable guidelines, § 522 should be revised to provide a framework for greater uniformity of exemptions among various bankruptcy court jurisdictions.
NBRC- 0302	Brian L. Mc Donnell	President, Navy Federal Credit Union		1322, 1325, 1326, Rule 3015		Bankruptcy is increasingly being perceived as an "easy way out" for debtors seeking to avoid responsibility for their actions. In addition, many people no longer consider bankruptcy to be a financial stigma. Bankruptcy filings represent significant time and money burdens for creditors and the courts, the costs of which are often passed on to customers of the creditors in the form of higher prices. It is imperative that bankruptcy procedures be revised to discourage financial irresponsibility in today's highly leveraged personal economic environment. One way of reducing the administrative burden of bankruptcy filings would be to enhance the cost-effectiveness of bankruptcy proceedings.	To enhance the "cost-effectiveness" of bankruptcy proceedings, Rule 3015 should be amended to: (1) automatically provide a copy of the plan to the creditor; (2) extend the amount of time a creditor has to object to an amended plan from 20 days to 30 days; and (3) revise §§ 1322, 1325, and 1326 and Rule 3015 to insure that all disposable income will be distributed to creditors for the full term of the plan or until the creditors are paid in full. Also, in the interest of establishing fair and equitable guidelines for bankruptcy proceedings, the Bankruptcy Code and Rules should be amended to provide for greater uniformity in procedures, forms and practices of the various bankruptcy courts.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issues should be considered by the NBRC: (1) whether the current appellate system should be changed to eliminate the district court review; (2) whether Congress should eliminate provisions which require withdrawl of the district court's reference to the bankruptcy court.	The CLLA believes that the first issue should receive top priority, and the second should receive moderate priority. While the second issue is interesting, it is probably not worth the investment of the NBRC's limited resources.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: whether bankruptcy judges should receive Article II status. The CLLA believes that this issue is a non-priority. Article III status is really a political issue regardless of the probably very valid rationale developed by the NBRC to support conferring Article III status.	Article III status is a political hot potato, and debate over this issue would not be a good investment of the NBRC's limited resources.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: whether Congress should eliminate provisions in Title 28 requiring mandatory abstention from the exercise of jurisdiction by the district court in certain circumstances,	The CLLA believes that this issue should receive moderate priority, and does not recommend a significant investment of the NBRC's resources on this issue.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: whether there is a rational basis for excluding personal injury claims from the jurisdiction of bankruptcy courts.	The CLLA believes that this issue should receive top priority because it represents a fundamental issue facing the bankruptcy system today.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: whether bankruptcy courts should be permitted to conduct jury trials even with the consent of both parties. If they should not, how should the system address jury demands made for strategic advantage	The CLLA believes that this issue should receive moderate priority.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: whether bankruptcy courts should be authorized to exercise the full range of contempt powers currently exercised by the district courts.	The CLLA believes that this issue should receive top priority, and that the Code should be amended to clearly provide language authorizing bankruptcy courts to exercise contempt powers.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: whether Congress should restrict the venue options for corporate debtors by eliminating the option basde on place of incorporation Should Congress curtail the ability of a parent corporation to follow its subsidiary into a venue that would otherwise be unavailable	The CLLA believes that this issue should receive top priority, and that the Code should amended so that venue is permitted only where the corporation has a real and tangible connection.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: how the bankruptcy system can best accomodate the constitutional constraints of sovereign immunity.	The CLLA believes that this issue should receive moderate priority because while it is interesting issue, it is not an issue that is faced with any regularity by those who are not active in the practice of bankruptcy law.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: what is the goal of consumer bankruptcy	The CLLA believes that this issue should receive moderate priority because it is likely that the answer to the question of consumer bankruptcy's goal would bear a striking resemblance to the goals that now exist for consumer bankruptcy. Therefore, little or no resources need to be invested in this issue.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: should audits of debtors' financial backgrounds become a part of the consumer bankruptcy system	The CLLA believes that this issue is a non-priority because the ultimate recommendation would probably be too costly and burdensome to implement.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: whether repeat filing is a significant problem, and how can it be controlled	The CLLA believes that this issue should receive moderate priority.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)		707(b)		The Commerical Law League of America believes that the following issues should be considered by the NBRC: (1) Should the bankruptcy system explictly permit or prohibit pre-bankruptcy planning in consumer cases; and (2) Does § 707(b) in its current form serve a useful function	The CLLA believes that the first issue is a "non-priority," and that the second issue is a top priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: what are the consequences to debtors and creditors of decreasing the scope of the bankruptcy discharge Should it be further constrained Should it be restored to its original scope	The CLLA believes that this issue is a moderate priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: should the bankruptcy system permit in forma pauperis filing of bankruptcy petitions	The CLLA believes that this issue should receive moderate priority. The CLLA supports making access to the bankruptcy system as available as possible and suggests that the installment method of payment of the filing fee be the preferred method for making that access to the courts more available.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issues should be considered by the NBRC: Should property exemptions in bankruptcy be uniform in all fifty states If not, should the federal exemptions provide a ceiling on the state exemptions Is retail or wholesale valuation more appropriate for determining a creditor's allowed secured claim for property that a debtor wants to keep in a chapter 13	The CLLA believes that these issue should receive top priority (no additional details are provided). The CLLA believes that use of the terms "retail" and "wholesale" when describing valuation is confusing, and that it would probably be better to use "market" and "liquidation" respectively.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issues should be considered by the NBRC: Should consumer bankruptcy be organizaed around a chapter 7/chapter 13 split If so, should the differences between the chapters be expanded or contracted Should individuals be steered toward one chapter or another	The CLLA believes that this issue should receive moderate priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: Should more be done to provide consumer counseling alternatives to bankruptcy Should consumer education become part of the bankruptcy process Who should perform this function	The CLLA believes that these issues should receive top priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: whether small businesses should be permitted to reorganize in chapter 13. Or should business bankruptcies be handled in other chapters	The CLLA believes that this issue should receive top priority because this issue has become more important with the increase in debt limitations for filing chapter 13, particularly with the sole proprietorship and professionals who are seeking relief under chapter 13.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: for consumer bankruptcies, is the § 341 meeting efficient and effective	The CLLA believes that this issue should receive top priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: Should the bankruptcy trustee's tax responsibilities be modified and streamlined through the creation of a specific chapter of the Internal Revenue Code devoted solely to issues unique to bankruptcy reporting, sales of assets from the debtors estate, and avilability of tax attributes to the benefit of the estate	None.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issues should be considered by the NBRC: What role does chapter 11 serve in the American economy How do parties use the system to reorder business relationships Can the benefits of job preservation and preservation of going-concern value be strengthened	The CLLA believes that these issues should receive top priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issues should be considered by the NBRC: Does the Bankruptcy Code adeuately protect employee benefits Should old equity be permitted to participate in the reorganization of a business if it contributes to new value How should such participantion be regulated (significant case law is available on this issue)	The CLLA believes that these issues should receive top priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: What should be the rules for including claims together in the same class How much freedom should the plan proponents have to make classification decisions Should the requirement that at least one impaired class of creditors accept a plan be amended	The CLLA believes that these issues should receive top priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: Should the court exercise control over claims trading If so, what criteria should be used to regulate such trading Should procedures be developed to facilitate claims data	The CLLA believes that this issue should receive top priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: Should the court's power to change the composition of creditor's committees and review the decisions of the U.S. Trustee be restored	The CLLA believes that this issue should receive top priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: What rules should govern the courts' jurisdiction over the administrative affairs of a reorganized debtor Under what circumstances should plan modification be permitted	The CLLA believes that these issues should receive moderate priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issues should be considered by the NBRC, "but without a predisposition": Should limitations on serial chapter 11 filings be imposed If so, should serial filings be limited to consensual cases and liquidations	The CLLA believes that these issues should receive top priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: Do the current rules adequately limit exclusivity to file a plan of reorganization Should exclusivity periods be more or less restrictive Would a standard for exclusivity rather than a time-based rule be more effective What steps can be taken to get chapter 11 cases concluded more quickly	The CLLA believes that these issues should receive moderate priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: Should § 365 be amended to clarify the effect of "rejection" Should the courts be given specific authority to exercise more procedural control over debtors' decisions to assume or reject contracts What duties should be imposed on the non-debtor party to an executory contract pending assumption or rejection	The CLLA believes that these issues should receive top priority (no additional details are provided). Discussion of these issues should include clarification of § 365 as to the definiation of an executory contract.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issue should be considered by the NBRC: Should industry specific legislation which has been added to the Bankruptcy Code since 1978 be repealed in order to reestablish the historic evenhandedness of commercial law statutes Also, should "straight liquidations" (i.e. chapter 11's filed with initial intent to liquidate) be allowed under chapter 11 Should the Bankruptcy Code be amended to increase meaningful participation by the unsecured creditor body Should there be a good faith requirement for filing of chapter 11 cases	The CLLA believes that the issue of industry specific legislation should receive top priority. The CLLA has consistently opposed industry specific legislation and believes that the NBRC should reexamine the Code with an eye towards reestablishing the balance.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following small business issues should be considered by the NBRC: 1) How can reorganization under the Code be more effective, inexpensive and expeditious for small businesses Should small businesses have a "fast track" where absolute priority, disclosure and committee appointment requirements are eased Consideration of these issues should be based on the underlying premise that these efficiencies need to be accomplished without sacrificing the rights of the parties, other than the debtor, who are interested and involved in the bankruptcy (CLLA believes these issues should receive high priority). 2) What procedures would dispose of small business cases that do not have a reasonable chance ot reorganization ("non-priority" issue).	The CLLA believes that, with regard to procedures that would dispose of small business cases that do not have a reasonable chance ot reorganization, adequate mechansims already exist to deal with business cases that do not have a reasonable chance of reorgnization.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following partnership issues should be considered by the NBRC: 1) Is a partnership agreement an executory contract (CLLA believes this issues should receive high priority; no additional details are provided) 2) Does the trustee exercise the rights of partners who are debtors or are those rights reserved to the debtor ("high priority" issue). 3) Are clauses automatically converting a general partner's interest to a limited partnership enforceable in bankruptcy Are clauses compelling the sale of the bankrupt partner's interest enforceable ("high priority" issue) 4) Under what circumstances may the bankrupt court stay creditor actions against non-debtor partners for their liability for partnership debts Are there differences during the pendency of the case and after a plan is confirmed and the case is closed ("high priority" issue) 5) Should the bankruptcy court have the power to prohibit general partners of the bankruptcy partnership from transferring non-partnership assets during the pendency of the case ("high priority" issue) 6) Should the bankruptcy court have the power to compel non-debtor general partners to disclose information about their financial condition Should this information be sealed ("high priority" issue) 7) What rights should the chapter 7 trustee have against general partners What rights should the chapter 11 estate have against the partners ("high priority" issue) 8) Should non-partnership creditors have priority over partnership creditors as to non-partnership assets of general partners who are in bankruptcy, or who are in bankruptcy ("high priority" issue) 9) Should § 1111 be calrified to provide that conversion of non-recourse debt to recourse debt does not create general partner liability on such debt ("high priority" issue) 10) Should the Code authorize creation of committees of partners ("high priority" issue) 11) What is the status of new partners, fomer partners, special partners and partners by estoppel	The issue of the status of new partners, fomer partners, special partners and partners by estoppel should be a "non-priority" because it is much too broad and probably could never be addressed effectively by statutory enactment.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following small issue should be considered by the NBRC: Are statutory amendments needed with regard to LLP's and limited liability companies	The CLLA believes that this issue should be a "non-priority" because it is probably so intertwined with state law considerations that "it would not be a wise investment of the resources of the Commission."
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following issues should be considered by the NBRC: What priority, if any, should the claims of the PBGC be entitled to upon termination of an insured plan To a lien recognized in bankruptcy What should be the role of the PBGC in participating in a reorganization case	The CLLA believes that these issues should receive high priority (no additional details are provided).
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)		1113		The Commerical Law League of America believes that the following issue should be considered by the NBRC: What has been the impact of § 1113 on collective bargainning agreements	The CLLA believes that this issue should receive "high priority."
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following environmental issues should be considered by the NBRC: 1) Should "claim" include an injunction which prohibits future violations of environmental laws (CLLA believes that this issue should receive "high priority") 2) What rules should govern retention and sale of remediated property (CLLA believes that this issue should receive "high priority") 3) If funds are expended post-petition to clean-up property contaminated pre-petition, should such a claim be entitled to administrative expense priority (CLLA believes that this issue should receive "high priority") 4) What effect should the automatic stay have on environmental claims (CLLA believes that this issue should receive "high priority") 5) How should the existence of co-obligers with resources affect the estimation and allowance of claims against the estate Should non-debtor parties who have disbursed remidation costs have subrogation rights agaisnst the debtor (CLLA believes that this issue should receive "high priority")	No additional details are provided.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)		505(a)		The Commerical Law League of America believes that the following tax issues should be considered by the NBRC: 1) Should traceable payments of trust fund taxes to segregated funds be immunized from voidable perference recapture (CLLA believes that this issue should receive "high priority") 2) Should the list of exceptions to the anti-injuction provisions of the Internal Revenue Code be amended to incorporate Bankruptcy Code § 505(a) (CLLA believes that this issue should receive "high priority") 3) Should § 505(a) be amended to empower the bankruptcy court to enjoin the IRS from collecting trust fund taxes from responsible persons if this injunction would aid rehabilitation of the debtor, or to permit the debtor to allocate payments under the plan (CLLA believes that this issue should receive "high priority") 4) What effect should the automatic stay have on environmental claims (CLLA believes that this issue should receive "high priority") 5) How should the existence of co-obligers with resources affect the estimation and allowance of claims against the estate Should non-debtor parties who have disbursed remediation costs have subrogation rights agaisnst the debtor (CLLA believes that this issue should receive "high priority")	No additional details are provided.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following sovereign immunity issue should be considered by the NBRC: 1) What statutory changes, if any, are required to ensure that § 106 provisions are consistent with the recent Supreme Court decision in the Seminole Indian case (CLLA believes that this issue should receive "high priority")	No additional details are provided.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following chapter 9 issues should be considered by the NBRC: 1) What prior authorizations should a municipality have to file for bankruptcy relief, and should there be more hurdles for low-debt municipalities (CLLA believes that this issue should receive "high priority") 2) Should the protections now accorded to pledged special revenues be expanded or contracted (CLLA believes that this issue should receive "high priority")	No additional details are provided.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following mass torts issues should be considered by the NBRC: 1) Is the bankruptcy system the appropriate forum in which to process mass tort obligations (CLLA believes that this issue should receive "high priority") 2) Should future claimants be dealt with in bankruptcy reorganizations and liquidations (CLLA believes that this issue should receive "high priority") 3) Should tort victims' claims be given priority over other unsecured claims, secured claims, or administrative claims (CLLA believes that this issue is a "non-priority") 4) Should punitive damages receive a lower priority repayment than compensatory tort claims and contract-based claims (CLLA believes that this issue is a "non-priority") 5) Should the Bankruptcy Code specifically authorize "ride-through" for the claims of future tort victims that are not dealt with in a bankruptcy proceeding (CLLA believes that this issue should receive "high priority") 6) The CLLA states that additional issues that should be considered by the NBRC are: effect of § 1123 (priority issue), channeling injunctions to bring in insurance proceeds (moderate priority), multi-district litigation (priority), aggressive creditors who force liquidation (priority), and preservation of going-concerns (priority).	No additional details are provided.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following conflicts issues should be considered by the NBRC: relaxing and/or narrowing disinteredness standards (CLLA believes that this issue should receive "high priority"); definitions of "professionals," advisors, lobbyists, and surveyors (high priority issue); waiver of disinteredness requirements (moderate priority); effect of potential versus actual conflicts (high priority); whether Bankruptcy Rules supersede local regulations (high priority); conflicts with regard to application to the engagement and compensation of professionals (high priority); whether one professional can represent multiple parties (high priority); and whether disqualification of individuals disqualifies their firms (high priority).	No additional details are provided.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following fees & costs issues should be considered by the NBRC: criteria for approval of compensation, routine hold-backs, lodestars, and other compensation schemes (CLLA believes that this issue should receive "high priority"); whether requirements for local counsel drive up costs (high priority); and creditors' obligations to reduce costs imposed on the bankruptcy estate (non-priority).	No additional details are provided.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following U.S. Trustee issues should be considered by the NBRC: administrative duties and role of the U.S. Trustees (CLLA believes that this issue should receive "high priority"); and whether U.S. Trustees adequately monitor chapter 7 and chapter 13 trustees (high priority).	No additional details are provided.
NBRC- 0303	Comm. Law League of America	Comm. Law League of America (CLLA)				The Commerical Law League of America believes that the following ancillary proceedings issues should be considered by the NBRC: whether current transNat'l.insolvency law is adequate (CLLA believes that this issue is a "non-priority"); whether legislative adjustments to alter the interNat'l.reach of domestic bankruptcy legislation are needed (non-priority); whether avoiding powers should have extra-territorial effect (moderate priority); clarification of where comity is apporpriate (non-priority); upon release of the reports from the TransNat'l.Insolvency Project, the Committee J Concordat, and the UNCITRAL, what legislative enactments will be required (non-priority until specifics of the reports are known); review provisions for cross-border cases (non-priority); and whether Congress should puruse other avenues in developing a coherent law of transNat'l.bankruptcies.	CLLA concludes that § 304 is adequate to address transNat'l.insolvency issues. Legislative adjustements to extend the reach of domestic bankruptcy law are not needed because reciprocity and access to courts in foreign jurisdictions is more effective. Futher, comity is already well-defined and need not be addressed further by the NBRC. With regard to cross-border cases, very few judges have the expertise to handle these cases, and thus training programs will be necessary if special review provisions are enacted.
NBRC- 0304	Arthur J. Spector	Bank- ruptcy Judge (E.D. Mich.)	Copy of opinion from In re Dow Corning Corp.	522, 523, 1102, 547		Bankruptcy Code has too many areas of "free-floating seat-of-the-pants 'equity' decisions." Specific areas where the Code does not provide enough structure are: (1) determination of what is "disposable income"; (2) determination of "undue hardship" in § 523(a)(8); (3) the "pseudo-disposable income test found in §§ 522(d)(11)(B), (C), (D), (E) and the new § 523(a)(15)(A)"; (4) matrimonial bankruptcy litigation; (5) § 1102 contains a statutory gap, where there is no statutory direction as to whose is responsible for replacing members of official comittees whey they resign, die, etc., or to remove a creditor from a committee when the need is demonstrated (the author attaches a copy of an opinion from In re Dow Corning Corp., Case No. 95-20512, March 21, 1996, illustrating this point); (6) pre-bankruptcy planning; (7)existence of the "new value exception" in chpater 11 camdowns; (8) classification issues; (9) determination of whether value is "new" under § 547(c)(4); (10) numerous questions under § 365; (11) allocation of protection payments; and (12) valuation of assets under chapters 12 and 13.	Bankruptcy Code shold be amended to provide more structure for Bankruptcy Judges.
NBRC- 0304	Arthur J. Spector	Bank- ruptcy Judge (E.D. Mich.)	Copy of opinion from In re Dow Corning Corp.			Chapter 13 contains unclearand incomplete statutory directives, resulting in "chaos" in the law of chapter 13. One of the most "mischevious" portions of reorganization law generally, and chapter 13 specifically, is the clause in § 1327(b) about "the confimrationof a plan vest[ing] all of the property of the estate in the debtor."	A subcommitee should be created to rework chapter 13 from top to bottom, strarting from scratch.
NBRC- 0304	Arthur J. Spector	Bank- ruptcy Judge (E.D. Mich.)	Copy of opinion from In re Dow Corning Corp.			While the author has no strong opinion in the wisdom of having Bankruptcy Appelalte Panels, he suggests that better staffing of the panels would dispel much of the criticism they have drawn.	In order to address institutional and constitutional concerns, the Bankruptcy Appellate Panels should consist of two Article III juducial officers (either a district judge and a circuit judge or two district judges) together with one bankruptcy judge. Every order the Panel issues should require at least two votes. The presence of the Article III judge will give the orders precedential effect, and the Bankruptcy Judge will contribute expertise.
NBRC- 0304	Arthur J. Spector	Bank- ruptcy Judge (E.D. Mich.)	Copy of opinion from In re Dow Corning Corp.			Current appellate process is flawed because (1) in small cases, parties rarely have the financial wherewithal or amount at stake to proceed through two trials and two appeals, and (2) by the time a second appeal is concluded, important events could either moot the appeal or be substantially delayed at great prejudice to the litigants or other parties in interest.	The author also supports the creation of direct appeal to the Courts of Appeals.
NBRC- 0304	Arthur J. Spector	Bank- ruptcy Judge (E.D. Mich.)	Copy of opinion from In re Dow Corning Corp.			Special interest legislation, in particular the removal of personal injury and wrongful death claims from the jurisdiction of the bankruptcy courts, despoil the Code. No real bankruptcy policy justifies this removal, which has resuled in a jurisidictional nightmare in the "mega-cases."	Special interest legislation, in particular the jurisdictional provisions for personal injury and wrongful death claims, should be repealed.
NBRC- 0304	Arthur J. Spector	Bank- ruptcy Judge (E.D. Mich.)	Copy of opinion from In re Dow Corning Corp.	362		In most if not all cases, determinations about whether an automatic stay is in effect in a particular circumstance should be made by the Bankruptcy Courts. Too often, state and federal judges who are unhappy about a bankruptcy case interfering with their docket declare that a bankruptcy stay does not apply to a lawsuit pending before them. Frequently, these decisions are poorly considered.	NBRC should further study the issue of which courts should determine the applicability of a bankruptcy's automatic stay.
NBRC- 0305	John E. Acuff	Attorney	Cover letter from Senator Fred Thompson enclosing this letter from a constituent			Author represents a small Tennessee company who is a creditor in the chapter 11 case of a Texas debtor. The author complains that his clients cannot participate in the bankruptcy because they cannot afford to litigate in such a distant venue.	Bankruptcy Code should be amended so that creditors who cannot afford the expense of participating in bankruptcies filed in distant venues are not altogether prevented from partcipating in the bankruptcy.
NBRC- 0306	Michael T. Hertz	Attorney	Article entitled "Cutting Administrative Expenses in Chapter 7 Bankruptcy"			Author attaches an article that he will be submitting to the San Francisco Daily Journal entitled "Cutting Administrative Expenses in Chapter 7 Bankruptcy." In the article, the author argues that the current method for determining chapter 7 trustee fees, which calculates fees case-by-case rather than globally as in chapters 12 and 13, has "profound... impact," and "bear[s] re-examination." This approach, he argues, results in lower returns to creditors and administrative inefficiencies.	Author suggests that in chapter 7, as in chapters 12 and 13, each estate should be charged a maximum fee based on distributions through the estate. A panel of chapter 7 trustee's global fees and expenses should be capped in a manner analagous to that of the standing chapter 13 trustee. Moreover, the fees and expenses of certain of the trustee's professionals--particularly accountants and attorneys, who services may be required in non-asset as well as asset cases--be paid from the global pool of revenue generated by all of the chapter 7 trustee's cases.
NBRC- 0307	Leon S. Forman	On behalf of the American College of Bankruptcy (ACB)	"Revised Summary of College Positions," and names and addresses of ACB focus group members			ACB concludes that: 1) The Bankruptcy Code of 1978 as amended is generally working well and no major overhaul is necessary or desirable. 2) Local rules are applied inconsistently throughout the coutry, and in some districts burdensome additional procedures are imposed, thereby increasing the cost of a bankruptcy case.	ACB recommends that: 1) The only amendments to the Code that are required at this time are the consideration of changes and remedies for specific problems. 2) With regard to local rules, a statement of policy and direction from the Advisory Committee on Bankruptcy Rules is needed, including a flexible Model Uniform Local Bankruptcy Rule.
NBRC- 0307	Leon S. Forman	On behalf of the American College of Bankruptcy (ACB)	"Revised Summary of College Positions," and names and addresses of ACB focus group members			ACB concludes that giving Bankruptcy Judges Article III status would at least eliminate the core and non-core issues and would resolve the current problems related to jury trials in bankruptcy cases. Issues related to the change in status for sitting judges should be resolved through legislation.	ACB recommends that ideally Bankruptcy Judges should be appointed under Article III, which would should make the system function more effectively.
NBRC- 0307	Leon S. Forman	On behalf of the American College of Bankruptcy (ACB)	"Revised Summary of College Positions," and names and addresses of ACB focus group members			ACB concludes that two levels of appeal in bankruptcy proceedings of final orders as of right lead to delay in achieving a final resolution of disputes as well as increased costs. In addition, because an appellate decision by a district judge is not binding precedent, the same issues are constantly being relitigated.	ACB recommends that direct appeal from the Bankruptcy Court be created, thereby eliminating the intermediate appeal to the District Court. If intermediate appeal is to be retained, Bankruptcy Appellate Panels (BAP's) consisting of bankruptcy judges should be mandatory in every circuit. If a BAP is made mandatory, the legislation should provide that a BAP decision is binding precedent upon bankruptcy judges in that circuit.
NBRC- 0307	Leon S. Forman	On behalf of the American College of Bankruptcy (ACB)	"Revised Summary of College Positions," and names and addresses of ACB focus group members			ACB concludes that the Code provision imposing a strict per se test of disinteredness is "not working well" as applied to the employment of professionals by debtors-in-possession in chapter 11 cases.	ACB recommends the elimination of the per se test of disinteredness as applied to the employment of professionals by debtors-in-possession in chapter 11 cases. Instead, professionals should be required only to meet the standard of having no materal adverse interest. Specific statutory guidelines should be created to enforce uniformity of ethical conduct in these situations. Also, the Code and Rules should be amended to adopt a nationwide rule relating to practice before the bankruptcy court, thereby eliminating the formality of pro hac vice motions.
NBRC- 0307	Leon S. Forman	On behalf of the American College of Bankruptcy (ACB)	"Revised Summary of College Positions," and names and addresses of ACB focus group members			ACB concludes that chapters 7 and 13 operate by judicial process and not by an adminiatrative system because (1) many administrative duties have already been moved from the court to the U.S. Trustee, (2) under these chapters, judicial attention or decision making is frequently required at some stage of the case and thus a completely separate administrative system would unnecessarily load the process with additional expense, and (3) the discharge is of such significance that it should be considered by a court.	ACB opposes the proposal of an administrative system for chapters 7 and 13.
NBRC- 0307	Leon S. Forman	On behalf of the American College of Bankruptcy (ACB)	"Revised Summary of College Positions," and names and addresses of ACB focus group members			ACB concludes that chapter 11 is working reasonably well and does not require structural change. Its best attribute is flexibility. Exclusivity, eligibility, small business and other provisions are working reasonably well.	ACB feels that chapter 11 does not require structural change. As to the eligibility of insurance companies, further study is warranted.
NBRC- 0307	Leon S. Forman	On behalf of the American College of Bankruptcy (ACB)	"Revised Summary of College Positions," and names and addresses of ACB focus group members			U.S. Trustee system is not working well and needs reexamination. Conduct of the U.S. Trustees is not uniform or consistent geographically. In chapter 11, U.S. Trustees should restrict their activities to cases where no active creditors' committee exists but in all cases should advise the court with respect to fee applications. Also, some bankruptcy estates are being charged a surcharge that is greater than the amount required to support the bankruptcy system This practice is perceived as unfair and overtaxes the participants.	ACB concludes that a strong set of guidelines should be prescribed by the Nat'l.Office of the U.S. Trustee, and the Office should closely montior whether these guidelines are being followed.
NBRC- 0307	Leon S. Forman	On behalf of the American College of Bankruptcy (ACB)	"Revised Summary of College Positions," and names and addresses of ACB focus group members			ACB concludes that mediation and alternative dispute resolution procedures have been helpful in many districts and bear further consideration.	ACB recommends that mediation and alternative dispute resolution be encouraged and developed in the bankruptcy system, although at present not enough is known about this field to jusitfy adoption of statutory or procedural rules.
NBRC- 0308	James R. Covington III	Dir., llinois State Bar Assoc.	Proposal from the Illinois State Bar Assoc.'s Comm., Banking, and Bankruptcy Law Section Council, contained in letter dated 3/19/96 from Michael J. Chmiel	523		On occasion, an attorney representing a chpater 7 debtor will agree to take payments over a period of time which goes beyond the filing of a voluntary petition in bankruptcy. Technically, the obligation which accrued prior to the filing of the bankruptcy case is discharged in bankruptcy unless the debtor agress to reaffirm the same. Negotiating with the client is awkward at best. A recent district court case in Arizona confirmed this analysis.	Section 523(a) should be amended to make these types of attorneys fees non-dischargeable in bankruptcy. Suggested statutory language is provided.
NBRC- 0309	Beth Wiggins	Federal Juducial Center, Research Div.	Survey on the United States Trustee Program (Februaryv1996)			Author attaches a copy of a questionniare that was distributed by the Federal Judicial Center and the Bankruptcy Judges Division in the Administrative Office to bankruptcy judges, bankruptcy clerks, chapter 7 trustees, and chapter 13 trustees. The quentionnaire is designed to elicit constructive suggestions about the U.S. Trustee program. The questionnaire has been distributed that the Subcommittee on Estate Administration and staff are now reviewing responses received to date.	None.
NBRC- 0310	InterNat'l. Swaps and Derivative Assoc., Inc. and Public Securities Assoc.	InterNat'l. Swaps and Derivative Assoc., Inc. ("ISDA"), and Public Securities Assoc. ("PSA")		106, 107, 108, 109, 110, 362, 563		In this position paper entitled "Financial Transactions in Insolvency: Reducing Legal Risk Through Legislative Reform," the ISDA and the PSA discuss the enforceability of termination, netting and foreclosure on collateral provisions under the Bankruptcy Code and the Federal Deposit Insurance Act ("FDIA"). They highlight problems and inconsistencies under the Code and the FDIA, and describe how netting has a systemic effect that is intertwined with bankruptcy regulations. For example, a bankruptcy court stay against the liquidation of securities can result in uncertainty and the potential inability of a party to finance the securities it has purchased or that have been pledged to it, which could result in gridlock and a chain of insolvencies. The Code and the FDIA need to be amended to clarify how these issues should be addressed and to recognize the unique concerns implicated in insolvency transactions.	The ISDA and PSA suggest legislative amendments that would minimize the risk of dispurtion within or between financial markets upon the insolvency of a participant in those markets. Specific statutory language is provided.
NBRC- 0311	Samuel L. Bufford	Bankruptcy Judge (C.D. Cal.)		362(b)(4)		The proposed amendment to § 362(b)(4) presents two problems: (1) The proposed revision would substantially magnify the problem that arises when a government agency invokes this provision to terminate a license or to destroy debtor's property without a court hearing, namely that the burden of going to court for relief is shifted from the creditor to the debtor and that notice to other affected creditors is eliminated; (2) If the government unit is part of state government, the proposed amendment would allow the government unit to use the Eleventh Amendment to avoid a bankruptcy court's jurisdiction, and the court would be powerless to control prejudice to other creditors resulting from the government's appropriation of property belonging to the estate.	Author opposes the proposed amendment to § 362(b)(4), and recommends that where government action would have a substantial impact on the value of a debtor's business, the automatic stay should apply. Affected creditors should be given notice, and the court should have an opportunity to balance the interests of all parties before permitting the government to take action that destroys substantial value belonging to the estate.
NBRC- 0312	John B. Scott, Jr.	Attorney	Cover letter from Senator Howard Heflin, enclosing this letter from his constituent			Current provisions governing how nationwide jurisdiction is conferred for preference claims give undue advantage to chapter 7 trustees and chapter 11 debtors-in-possession. Creditors often settle for a relatively modest percentage on their preference claim in order to avoid the time and expense of having to defend a case in somebody else's "briar patch."	In the ongoing efforts to achieve the proper balance between debtor and creditor, some consideration should be given toward putting the parties on more equal footing with regard to nationwide jurisdiction.
NBRC- 0313	Joseph L. Donofro	Architect, Donofro and Assoc.	Cover letter from Senator Howard Heflin, enclosing this letter from his constituent			Debtors often use bankruptcy simply to escape financial obligations. Many times, debtors can afford to pay off at least of portion of their debts, but use the bankrtupcy system to avoid any repayment.	Bankruptcy Code should be amended to require debtors who have filed for bankruptcy to appear before the court every two or three years to produce tax returns and be evaluated as to their ability to repay their obligations. If the debtors are able to afford repayment, the Bankruptcy Judge should be able to order such repayment, with interest.
NBRC- 0314	Peter F. Geraci	Bankruptcy attorney	Summaries, a letter, and a decision from a case discussing payments of bankruptcy attorneys over time			"No money down" practitioners, who do not collect their fees before filing, are violating at least one statute. Some pratitioners even lend their clients the $175 filing fee. This practice presents obvious legal and ethical problems, and should not be permitted. Some of these practitioners may ask the NBRC to consider an amendment which would provide an exception for debtors' attorneys fees. This request should be denied because there is not "access to the courts" problem that requires an exception for dischrage for debtors' attorneys fees. Author attaches two summaries of a case that discusses payments of attorneys over time, a letter to a co-editor of a newsletter discussing this case, and a copy of the decision from the case.	Opposes any amendment to the Code that would provide an exception for discharge for debtors' attorneys fees, or that would in any other way permit debtors' attorneys to make "no money down" filings.
NBRC- 0315	Paul Mignini, Jr. and Gary White	President, Nat'l. Assoc. of Credit Management ("NACM"), and Chairman. NACM Government Affairs Committee, respectively				The proposed definition of small business as a business with less than $10 million in net income would effectively allow for over 90% of all non-consumer filings to qualify for expedited treament. The definition should be narrowed so that only true small businesses are entitled to such treatment.	Small business should be defined not be by income, a figure which is easily manipulated, but by the amount of debt, a figure which more accurately represents the debtor's financial position.
NBRC- 0315	Paul Mignini, Jr. and Gary White	President, Nat'l. Assoc. of Credit Management ("NACM"), and Chairman. NACM Government Affairs Committee, respectively				NACM believes that the time frame for the filing of a plan by a small business debtor must be viewed in relationship to the availability of extensions on the period of exclusivity for the debtor. While the proposed 45 day period for filing a plan is too short, NACM remains equally concerned that the ability of the debtor to secure extensions of the exclusivity period leads to abuses of the bankruptcy system.	NACM recommends that the time in which small businesses can file a plan should be kept to 120 days, and that no extensions be granted. Failure to meet this deadline should allow the creditors to either liquidate the business or dismiss the case.
NBRC- 0316	Comm. Law League of America	Comm. Law League of America ("CLLA")	Copies of survey responses			The CLLA presents the "Results of An Empirical Study: Impact of Potential Capital Gain Taxes on Sale of Assets in Bankruptcy Cases." The CLLA concludes that potential capital gains taxes are forcing chapter 7 bankruptcy trustees to abandon tens of millions of dollars of assets. The study revealed that over the last four years at least $78 million was unavailable for distribution from the estates of bankrupt debtors because the impact of capital gains taxes prevented trustees from selling thousands of pieces of real property. As a result, creditors are being deprived of a source of funds from which they could recoup some portion of the billions lost each year to bankrupt debtors. Results of the study and the concerns it raises are discussed in detail, and copies of each completed survey are attached.	The CLLA's survey studied possible solutions to this problem. Survey respondents ranked several suggested solutions as follows: (1) allow a trustee a "stepped up basis" in the property similar to that which exists with the transfer of assets upon death; (2) exclude an amount of capital gains from the estate's taxable income. Based on this study, the CLLA recommends that the Internal Revenue Code be amended to provide for a stepped up basis for chapter 7 bankruptcy estates when the trustee sells capital assets.
NBRC- 0317	Trevor A. Grimm	General Counsel, Apartment Assoc. of Greater Los Angeles	Documents discussing and illustrating tenant- debtor abuse of the automatic stay	362		Bankruptcy fraud related to eviction actions is rampant in Southern California and a problem in other states. "Evicted" tenants, sometimes at the urging of debtor attorney "petition miils," file or end up the named filer of fake Bankruptcy petitions filed solely for the purpose of obtaining the eviction-delay benefit of the Bankruptcy Code's automatic stay. The author attaches and number of reports, articles, statements, decisions, court documents, copies of statutory provisions, and other documents that discuss and illustrate this problem.	Bankruptcy Code should be amended to prevent abuse of the automatic stay and otherwise eliminate the multi-million dollar annual loss sustained by residential property owners who fall victim to tenants who abuse the stay.
NBRC- 0318	Paul Mignini, Jr., Mary E. Wysocki and Charles M. Tatelbaum	Pres., Nat'l. Assoc. of Credit Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		547		NACM sought the input of all NACM members with respect to proposed changes to the bankruptcy laws. The NACM Government Affairs Committee, without discussing the rationales for their suggestions, prepared the proposals below.	NACM's Government Affairs Committee concludes that § 547 should be amended to provide: (1) in the event of a recovery of an avoidable preferential transfer by a debtor-in-possession under chapter 11, the proceeds shall initially be placed into a separate interest-bearing escrow account which may be used only to satisfy the claims of creditors in the same class from which the proceeds were received; (2) when dealing with the avoidance of a preferential transfer, and the transfer in question is made by check in payment of an antecedent debt, the transfer shall be deemed to have been made and effected on the date the transferee deposits the check; (3) the term "made according to ordinary business terms" shall include a course of dealing between the debtor and the creditor for a period not to exceed one year prior to the transfer in question, and the bankruptcy court may use practices that are consistent and relevant as a basis for defining this term; contractual terms shall be used only in the absence of a pattern of practice.
NBRC- 0318	Paul Mignini, Jr., Mary E. Wysocki and Charles M. Tatelbaum	Pres., Nat'l. Assoc. of Credit Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		28 U.S.C. § 157		NACM sought the input of all NACM members with respect to proposed changes to the bankruptcy laws. The NACM Government Affairs Committee, without discussing the rationales for their suggestions, prepared the proposals below.	NACM's Government Affairs Committee concludes that § 157 should be amended to provide: (1) in an action to avoid a preferential transfer where the amount of the transfer is $3,000 or less, the adversary proceeding may be only commenced in a Bankruptcy Court in a district where the transferee maintains a regualr place of business.
NBRC- 0318	Paul Mignini, Jr., Mary E. Wysocki and Charles M. Tatelbaum	Pres., Nat'l. Assoc. of Credit Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		502, 547		NACM sought the input of all NACM members with respect to proposed changes to the bankruptcy laws. The NACM Government Affairs Committee, without discussing the rationales for their suggestions, prepared the proposals below.	NACM's Government Affairs Committee concludes that §§ 502 and 547 should be amended to provide that: in connection with a final evidentiary hearing of any objection to a proof of claim or on account of a claim or defense to the avoidance of a preferential transfer, the court on its own motion or the motion of any party may determine that the initial claim or any defense thereto was frivilous or without merit. In such a case, the court shall award reasonable attorneys' fees and costs to the prevailing party.
NBRC- 0318	Paul Mignini, Jr., Mary E. Wysocki and Charles M. Tatelbaum	Pres., Nat'l. Assoc. of Credit Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		546(c), 507(a)(1)		NACM sought the input of all NACM members with respect to proposed changes to the bankruptcy laws. The NACM Government Affairs Committee, without discussing the rationales for their suggestions, prepared the proposals below.	NACM's Government Affairs Committee concludes that § 546 should be amended to provide that: any goods or services that are provided or delivered to a debtor within ten days of the filing of a bankruptcy petition shall be entitled to be treated as an administrative priority claim under § 507(a)(1).
NBRC- 0318	Paul Mignini, Jr., Mary E. Wysocki and Charles M. Tatelbaum	Pres., Nat'l. Assoc. of Credit Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		507(a)		NACM sought the input of all NACM members with respect to proposed changes to the bankruptcy laws. The NACM Government Affairs Committee, without discussing the rationales for their suggestions, prepared the proposals below.	NACM's Government Affairs Committee concludes that § 507(a) should be amended to provide that: when credit is extended to a debtor-in-possession under chapter 11, any unpaid obligation incurred from the date of the petition until the date of the first § 341 meeting of creditors shall be entitled to a super priority ahead of claims entitled to priority under § 507(a)(1).
NBRC- 0318	Paul Mignini, Jr., Mary E. Wysocki and Charles M. Tatelbaum	Pres., Nat'l. Assoc. of Credit Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		1103		NACM sought the input of all NACM members with respect to proposed changes to the bankruptcy laws. The NACM Government Affairs Committee, without discussing the rationales for their suggestions, prepared the proposals below.	NACM's Government Affairs Committee concludes that § 1103 should be amended to provide that: if one or more professionals are authorized to be employed by a creditors' committee, 25% of any pre-petition retainer given to the debtor's attorney shall be held by the attorney in a separate interest-bearing account pending a bankruptcy court order allowing the payment of fees and expenses to the professionals.
NBRC- 0318	Paul Mignini, Jr., Mary E. Wysocki and Charles M. Tatelbaum	Pres., Nat'l. Assoc. of Credit Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		365		NACM sought the input of all NACM members with respect to proposed changes to the bankruptcy laws. The NACM Government Affairs Committee, without discussing the rationales for their suggestions, prepared the proposals below.	NACM's Government Affairs Committee concludes that § 365 should be amended to provide that: if a trustee assumes a lease for real or personal property in which the debtor is the lessee, at the time of assumption all post-petition lease payments must be paid. The curing of pre-petition defaults will not be required, and any such claims shall be treated as allowable unsecured claims without priority.
NBRC- 0318	Paul Mignini, Jr., Mary E. Wysocki and Charles M. Tatelbaum	Pres., Nat'l. Assoc. of Credit Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		1112	Rule 9011	NACM sought the input of all NACM members with respect to proposed changes to the bankruptcy laws. The NACM Government Affairs Committee, without discussing the rationales for their suggestions, prepared the proposals below.	NACM's Government Affairs Committee concludes that § 1112 should be amended to provide that: in the event that the court dismisses a chapter 11 case based on bad faith, the court may award reasonable attorneys' fees and costs in favor of the parties who moved for the dismissal in accordance with Rule 9011.
NBRC- 0318	Paul Mignini, Jr., Mary E. Wysocki and Charles M. Tatelbaum	Pres., Nat'l. Assoc. of Credit Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		523		NACM sought the input of all NACM members with respect to proposed changes to the bankruptcy laws. The NACM Government Affairs Committee, without discussing the rationales for their suggestions, prepared the proposals below.	NACM's Government Affairs Committee concludes that § 523 should be amended to provide that: if an individual, as an officer or director of a corporation has taken action by or on behalf of the corporation which would have made the debt non-discahrgeable for the corporation if it were an individual, then the debt shall also be non-discahrgeable to that individual as to any guarantor of the corporate debt who so participated in or effeted the fraudulent activity.
NBRC- 0318	Paul Mignini, Jr., Mary E. Wysocki and Charles M. Tatelbaum	Pres., Nat'l. Assoc. of Credit Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		362(h)		NACM sought the input of all NACM members with respect to proposed changes to the bankruptcy laws. The NACM Government Affairs Committee, without discussing the rationales for their suggestions, prepared the proposals below.	NACM's Government Affairs Committee concludes that § 362(h) should be amended to: substitute the word "person" for "individual."
NBRC- 0318	Paul Mignini, Jr., Mary E. Wysocki and Charles M. Tatelbaum	Pres., Nat'l. Assoc. of Credit Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		362(h)		NACM concludes that the current small business provisions in chpater 11 do not provide sufficeint relief to debtors and creditors involved with small business cases.	NACM's Government Affairs Committee recommends that the NBRC review the possibility of "reinstating the language which was contained in Chapter 10 as passed by the U.S. Senate in 1992 and 1994."
NBRC- 0319	Peter C. Alexander	Visiting Assoc. Professor of Law, Univ. of Pittsburgh School of Law	Copy of the author's article			Author encloses a current draft of his article "A Proposal to Abolish the Office of the United States Trustee" for the NBRC's consideration. In his article, the author concludes that the U.S. Trustee's Office has grown into a massive bureaucracy which has become so encumbered with red tape and inflexible regulations that it no longer functions effectively.	The author suggests that the Bankruptcy Administrator Program may be more effective at policing the bankruptcy system than the U.S. Trustee's Office. In the alternative, he proposes a hybrid model combining a case administrator, who would function similar to a trustee in a chapter 12 reorganization, and a judicial officer, who would oversee the integrity of the bankruptcy system.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			In this statement before the NBRC, the author and other ABI members provide an update on several of ABI's analytical and survey projects: the Nat'l.Symposia Series (roundatable discussion and presentment of position papers, copies of which are attached to this submission), the ABI Law Review, and the ABI membership Survey (aimed at identifying problems and solutions facing the NBRC, draft copy of which is attached).	None.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			In this statement before the NBRC, the author states that ABI members generally believe that there are many unanswered questions and unresolved issues concerning the exercise of jurisdiction that can only be answered by restructuring the bankruptcy courts as Article III courts.	Bankruptcy Judges should receive Article III status.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			In this statement before the NBRC, the author states that ABI members generally believe that appeals to the U.S. District Court are not only time consuming and expensive, but the resulting appeal lacks precednetial value and frequently is not affordd the same degree of analytical review as an appellate panel decision.	Supports an amendment that would eliminate appeal of bankrtupcy cases to U.S. District Courts.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			In this statement before the NBRC, the author states that ABI members generally agree that as long as the bankruptcy system remains as an Article I court, the vesting jurisdiction initially in the U.S. District Court would seemingly mandate some form of reference system. With regard to abstention, if the bankruptcy power is to be exercised in such a away as to deal with the often comprehensive and complex issues that arrive in chpater 11 cases, abstention should be discretionary and not mandatory	Supports some form of reference system, and believes that abstetion should be at the discretion of the bankruptcy court.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			In this statement before the NBRC, the author states that ABI members generally agree that the Article 1/Article III choice also has implications for personal injury claims.	To the extent that the bankruptcy court is restructured as an Article III court, there would appear to be no rational basis for excluding personal injury claims from the court's jurisdiction.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			In this statement before the NBRC, the author states that ABI members generally agree that the Article 1/Article III choice also has implications for jury trials.	Due to constitutional concerns, Article I bankruptcy courts should only be permitted to conduct jury trials with the consent of the parties.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			In this statement before the NBRC, the author states that ABI members generally agree that the Article 1/Article III choice also has implications for contempt powers.	Due to constitutional concerns, Article I bankruptcy courts should exercise contempt powers only as strictly circumscribed with review by the district court.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			Current venue provisions promote forum shopping.	Code should be amended to place additional restrictions on venue options because the exercise of more discretion by the bankruptcy court will permit the proper transfer of cases.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			In this statement before the NBRC, the author states that ABI members generally agree that: (1) Including debtor audits in the consumer bankruptcy system would be a monemental and expensive task; (2) Pre-bankruptcy planning is not necessary in most cases because the debtor has no property, but as a practical matter it would be difficult to prohibit such planning; (3) In forma pauperis filings, without the benefit of a very good community legal aid program, usually result in the bankruptcy petition being filed pro se. The debtor's lack of understaning may lead to "problems, questions and corrections."	Consumer audits shold only be conducted when the trustee believes an audit is necessary. Additional legislation is not necessary with regard to pre-bankruptcy planning. When a debtor files for bankrupcy, there is almost always a need for a lawyer.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material	707(b)		In this statement before the NBRC, the author states that ABI members generally agree that: (1) Section 707(b) is awkwardly written and has been of little use in some regions, but on a few occasions its has been used to dismiss a case involving "substantial abuse"; (2) The organization of consumer bankruptcy around the chapter 7/chapter 13 split should be preserved because different debtors have different financial needs and abilities.	Section 707(b) does serve a "useful function." The chapter 7/chapter 13 structure of consumer bankruptcy should be preserved because "consumers need two separate and distinct chapters."
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			Increasing the scope of bankruptcy discharge in chapter 13 may be the only hope of rehabilitation for the debtor and payment for the creditor.	The scope of bankruptcy discharge should be increased in chapter 13. Conformation should require good faith and substantial payment. Substantial payment should mean the amount the debtor can afford to pay for a period of up to five years.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material	109(g)		Repeat filings are not a problem in most jurisdictions. The author attaches a white paper by David B. Wheeler entitled "The Effect and Impact of Successive or Serial Bankruptcy Filings." The paper summarizes and analyzes the cases addressing serial bankruptcy filings. The author also attaches a white paper by Timothy D. Moratzka and John E. Bloomer entitled "Who May Be a Debtor Under § 109(g)", which analyzes cases involving § 109(g) and its application to abusive multiple filings.	Recent amendments to § 109(g) are sufficient to control the problem of repeat filings.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			"If we have uniform laws of banktupcy in all 50 states, it would appear to be equitable to have uniform federal exemptions in al 50 states."	Supports uniformity of property exemptions among the states.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material	1304, 1321, 1102, 1103		In order to make chapter 13 an alternative to chapter 11 for small businesses, chapter 13 would need to be amended so that it is more effective for small businesses.	To make chapter 13 an effective alternative to chapter 11 for small businesses, the Code should be amended as follows:broaden the eligibility limits; increase the debt limit to $1.5 million; lengthen the period for payment of non-consumer secured claims in order to accomodate commercial real esate and equipment loans; § 1304, which defines "debtor engaged in business," should be expanded to include corporations and partnerships; the U.S. Trsutee should be given the power to appoint a creditors committee for corporate and partnership debtors in the manner provided for under §§ 1102 and 1103; finally, § 1321, which provides for the filing of plans, should require the debtor engaged in business to file its plan within 60 days of filing the petition, which period may be extended an additional 60 days upon substantial justification.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			Consumer credit counseling is beneficial, but it is not available to debtors in many regions. Consumer education also provides many benefits, and should be provided by a neutral government agency such as the Office of the United States Trustee.	The practice of consumer credit counseling "needs to be specifically authorized by statute or it may be discontinued by the United States Trustee program." In addition, the Trustee program should offer consumer education. If the United States Trustee system is going to be funded in part by fees from each chapter 13 case, which totals millions of dollars each year, "perhaps a portion of the fund could be used to provide consumer [education]."
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			Author attaches a white paper entitled "Valuation Conflicts in the Consumer Bankruptcy Setting," by Richardo I. Kipatrick and Michael J. Zwick. The paper highliights the various approaches taken by the courts in their treatment of valuation, and the polarity of each approach in consumer bankruptcy cases.	The authors of the white paper conclude that "there is no simple solution to the question of valuing collateral in consumer bankruptcy cases. While some areas of this issue appear to have followed a trend, others are subject to an ongoing debate which could require action by the Supreme Court or Congress. Until that point, one can only look to his or her jurisdiction for guidance."
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			Bankruptcy Code provides adequate protection of employee benefits, but some adjustments are necessary.	"The PBGC should not get a springing partial lien when the minimum funding payments are not made. Either ERISA should give the PBGC a lien on specific categories of assets or Congress should decide that the minimum funding obligations should be unsecured."
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			In single asset cases, new value has been used as a basis for overcoming the absolute priority rule, "which turns everything on its head."	If new value is recognized, it should wither be made inapplicable to single asset cases, or in the alternative, consideration should be given to preserving the application of absolute priority in a single asset case by limiting the interest obtained by the contributor of new value to what that contribution bears to existing unpaid unsecured debt.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			None.	Similar claims should be classified together unless there is a real good reason for separate classification. Gerrymandering should not be permitted. The Code shold probably still require the acceptance of one impaired class (no additional details provided).
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			None.	Claims trading should not be restricted but the court should have the authority to adjust the rights of the claimants if adequate disclosure has not been made in connection with the sale of the claim (no additional details provided).
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			None.	The court should have the ultimate authority to change the composition of the creditors' committee and to review the decisions of the U.S. Trustee in connection with committee matters (no additional details provided).
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			None.	The court should not interfere with the affairs of a reorganized debtor except to the extent necessary to implement prior orders. Plan modification should only be permitted if the modification is immaterial or is approved by a resolicitation of the creditors.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			The author attaches a white paper by David B. Wheeler entitled "The Effect and Impact of Successive or Serial Bankruptcy Filings." The paper summarizes and analyzes the cases addressing serial bankruptcy filings. The author also attaches a white paper by Timothy D. Moratzka and John E. Bloomer entitled "Who May Be a Debtor Under § 109(g)", which analyzes cases involving § 109(g) and its application to abusive multiple filings.	Serial filings should be viewed skeptically by the court, but should not be prohibited. Abusive filings should be subject to sanctions (no additional details provided).
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			Valuable time is wasted through prolonged exclusivity periods, successive postponments, and unnecssary filings with regard to exclusivity.	Code should be amended to shorten exclusivity periods, and these periods should be terminated if the debtor does not file a 100% payment plan.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material	365		None.	"Section 365 should be amended to clarify the effect of rejection, which really means that the debtor has breached the contract and the contract should be terminiated by the order approving the rejection. The debtor should be allowed to reject the contract after approval by the court. During the period pending the assumption of rejection of the contract the non-debtor party can be assured of payment for the goods or services provided during the case" (no additional details provided).
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material	1110		None.	Most if not all industry specific legislation, such as § 1110 and the farmout legislation, should be repealed except to the extent that it clarifies non-discriminatory treatment (no additional explanation is provided).
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material	723	Rule 1007(g)	The author observes that: (1) most courts have found that partnership ageements are executory contracts; (2) that courts are split as to whether the trustee exercises the rights of the partners who are debtors, as opposed to those rights being reserved to the debtor; (3) most courts have found that clauses automatically converting a general partner's interest to a limited partnership enforceable in bankruptcy; (4) the majority of courts have found that the automatic stay does not protect non-debtor partners when the partnership files for bankruptcy relief; and (5) The extent of a partner's liability for partnership debts at state law determines whether, and to what extent, the partner may be compelled to contribute to a deficiency under current § 723;	Code should be amended as follows: (1) Clarify the provisions regarding the court's power to prohibit general partners of the bankruptcy partnership from transferring non-partnership assets during the pendancy of a case. Such amendments should allow both partner and partner creditor requests for relief; (2) Provide the bankruptcy court with the power to compel non-debtor general partners to disclose information about their financial condition, as the information is relevant to many issues in the liquidation or reorganization of the debtor partnership; (3) Provide that the rights of the trustee contained currently in § 723 of the Code should be equally available to chapter 7 and chapter 11 trustees; (4) Give nonpartnership creditors and partnership creditors equal priority claims on the assets of general partners, and avoid return to the "jingle rule"; and (5) Clarify that § 1111 to provide that conversion of non-recourse debt to recourse debt does not create general partner liability on such debt; (6) Permit creation, where necessary, of a committee of partners;
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			None.	Modest statutory amendments may be advisable with respect to LLP's and LLC's. The Code should be clarified to ensure that an LLC is an eligible debtor under the Code.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			As the PBGC's claims are often among the largest in bankruptcy, they lead to costly and lengthy litigation in numerous cases. Bankruptcy court's have repeatedly rejected priority for these claims, but because the PBGC has colorable arguments for its claims, they PBGC continues to assert the same priorities in every case, notwithstanding the many adverse court decisions.	Code should be amended to clarify the existing state of the law and make clear that the claims of the PBGC are not entitled to priority.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material	505(a)		The author concludes that: (1) Taxes should not encourage companies to file one petition over another; (2) Tax laws should not hinder the bankruptcy process; (3) The Supreme Court's decision in Beiger v. IRS, 495 U.S. 53 (1990), finding that tax collected as a trust is not property of the debtor, mistakenly placed taxing authorities in a position superior to what they could obtain in a non-bankruptcy environment; and (4) Allocation is a right given to a taxpayer and thus there is no reason why they should not be permitted to allocate in a reorganization case.	The author recommends that: (1) Bankruptcy laws should be structured to prevent debtors from chapter shopping for the greatest tax advantage; (2) Tax laws should facilitate the restructuring process and not overburden the debtor; (3) Special tax considerations that are given to companies in a bankruptcy petition should be available to an out-of-court workout, thereby avoiding a structural preference for either option; (4) The Code be amended to abrogate the tax consequences of the Supreme Court's decision in Beiger v. IRS; (5) The Internal Revenue Code should be amended to provide that payments under a plan are volutary, and thus the debtor has authority to allocate them; and (6) The anti-injunction provision of the Internal Revenue Code should be modified to incorporate Bankruptcy Code § 505(a), thereby recognizing the preemptive jurisdiction of the bankruptcy court over tax matters.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			The bankruptcy system is the most appropriate forum to process mass tort obligations.	Code should be amended to provide a comprehensive definition of "claim" so that both present and future tort claims are bound with certainty in the reorganization process, and not left to be dealt with afterward. Tort claims should not be given priority over admiistrative or other unsecured claims, and punitive damages should not be given priority over compensatory tort claims and contract-based claims. Future claims should not be able to "ride through" a bankruptcy proceeding, but instead must be "conclusively dealt with by the reorganization process."
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material	1322(b)(2)		The author attaches a white paper by Janna L. Countryman entitled "Mixed Collateral Under § 1322(b)(2)". The paper summarizes cases that address bifurcation of mortgage liens.	None.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			The author attaches a white paper by Robert F. Mitsch entitled "The Binding Effect of Plan Confirmation". The paper summarizes and analyzes cases that address the disparity among jurisdictions as to whether the chapter 13 plan or the proof of claim controls the amounts distributed to creditors. The author of the paper concludes that this disparity is arguably inequitable to creditors because: (1) the plan confirmation hearing can be held quickly, preventing a nationally headquatered creditor from effectively obtaining counsel to object to the proposed chapter 13 plan; and (2) Regardless of the circumstances, the creditor still has 90 days after the meeting of creditors to file a proof of claim, and thus confirmaiton of the plan could occur months before the proofs need to be submitted.	The author of the white paper suggests that one possible remedy for this disparity would be to provide that the chapter 13 plan be only "provisionally" confirmed, and to permit the trustee to adjust for properly allowed proofs of claim.
NBRC- 0320	Robert M. Zinman, on behalf of the Bankruptcy Institute	American Bankruptcy Institute ("ABI")	Numerous position papers, memoranda and research material			The author attaches a white paper by Joseph R. Prochaska entitled "What Rate of Interest for Secured Claims in Chapters 12 and 13". The paper summarizes and analyzes cases that address treatment of claims secured by property other that the primary residence.	None.
NBRC- 0321	Christopher D. Cameron	Author of article in Santa Clara Law Review	Submission date is approximated	1113		In his article entitled "How 'Necessary' Became the Mother of Rejection: An Empirical Look at the Fate of Collective Bargaining Agreements on the Tenth Anniversary of Bankruptcy Code Section 1113," author Christopher D. Cameron presents an emprircal analysis of the question "Is section 1113 working" 34 Santa Clara L. Rev. 841 (1994).	The author's study concludes that organized labor's twin goals of halting unilateral rejection of collective bargainning agreements and reducing the perceived tendancy of bankruptcy judges to grant rejection have been achieved. The study also indicates that the employer's conduct at the bargainning table is far less important in the bankruptcy judge's decision-making calculus than are the merits of his arguments for rejection. The article concludes that "[f]or all intents and purposes, 'necessary' under step three means the same thing as 'fair and equitable' under step four."
NBRC- 0322	Morris G. Shanker	John Homer Kapp Professor of Law, Case Western Reserve Univ,		547(b)		In his article entitled "The American Bankruptcy Preference Law: Perceptions of the Past, the Transition to the Present, and Ideas for the Furture," the author makes the following observations: (1) "That we, unfortunately have forgotten that the prevention of fraudulent transfers was the original historical purpose for bankruptcy preference statutes."; and (2) "That creditor equality, the justification for the current American Bankruptcy Statute, is a myth. To the contrary, '... today's American Preference Avoidance law is more like a sieve through which most creditors escape. As to the few remaining creditors still subject to preference avoidance attack,...it is hard to perceive any principled basis or much rhyme and reason to explain their disfavor.'"	The author conlcudes that the bankruptcy avoidance statute has outlived its usefulness in the United States, and perhaps also in other market oriented societies. He recommends replacing this statute with "something significantly different.," and provides draft statutory legislation.
NBRC- 0323	Cynthia A. Baker	Assist, Prof., Emory Univ. School of Law				The current system for compensating professionals, which relies largely on after-the-fact review by the court or the U.S. Trustee, is ineffective and costly. Under this system, clients have little or no incentive to rein in their professionals. The author attaches a copy of her article entitled "Other People's Money: The Problem of Professional Fees in Bankruptcy," which analyzes the flaws in the current system and proposes solutions for reforming the fee system. The central flaw is that chapter 11 permits committees and DIP's who are purchasing professional services to spend other peoples' money.	The bankruptcy system should be reformed to realign costs and benefits, provide more information about costs, and leave the primary decisions about the reasonableness of professional costs to those parties who have an economic interest in the case outcome.
NBRC- 0324	Richard H. Walker	Gen. Counsel, U.S. Securities and Exchange Commission		362, 1109		In this submission representing the preliminary views from SEC staff, the author states that: (1) the SEC has a strong interest in ensuring that the bankruptcy courts are not used as a "haven for wrongdoers" in subversion of congressional intent; (2) scare enforcement resources should not be diverted into unnecessary or duplicative litigation in bankruptcy court; and (3) the SEC also has an interest pursuant to § 1109(a) as a party-in-interest, in protecting the interest of public investors who hold securities in companies involved in the bankruptcy system, ensuring adequate disclosure of reorganization plans that provide for the issuance of unregistered securities, and preventing the misuse of the Bankruptcy Code's exemption from Securities Act Registration.	In furtherance of these interests and in order to assure that the automatic stay is not used to hinder legitimate SEC efforts, the author proposes that the Bankruptcy Code be amended to: (1) Clarify the scope of the governmental police or regulatory exception in §§ 362(b)(4) and (5); (2) Clarify the standard for enjoining acts within the police/regulatory exception; (3) Clarify grounds for lifing the stay. The author also urges the NBRC to schedule a meeting devoted solely to governmental concerns because the interaction of the Bankruptcy Code and governmental activities raises unique issues.
NBRC- 0324	Richard H. Walker	Gen. Counsel, U.S. Securities and Exchange Commission Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		522(b)(2)(A)		In this submission representing the preliminary views from SEC staff, the author states that: (1) the SEC has a strong interest in ensuring that the bankruptcy courts are not used as a "haven for wrongdoers" in subversion of congressional intent; (2) scare enforcement resources should not be diverted into unnecessary or duplicative litigation in bankruptcy court; and (3) the SEC also has an interest pursuant to § 1109(a) as a party-in-interest, in protecting the interest of public investors who hold securities in companies involved in the bankruptcy system, ensuring adequate disclosure of reorganization plans that provide for the issuance of unregistered securities, and preventing the misuse of the Bankruptcy Code's exemption from Securities Act Registration.	In furtherance of these interests, the author proposes that the Bankruptcy Code be amended to establish a ceiling for the homestead exemption in order to eradicate the enormous disparities in between different states' allowed exemptions.
NBRC- 0324	Richard H. Walker	Gen. Counsel, U.S. Securities and Exchange Commission Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		543	547(c)	In this submission representing the preliminary views from SEC staff, the author states that: (1) the SEC has a strong interest in ensuring that the bankruptcy courts are not used as a "haven for wrongdoers" in subversion of congressional intent; (2) scare enforcement resources should not be diverted into unnecessary or duplicative litigation in bankruptcy court; and (3) the SEC also has an interest pursuant to § 1109(a) as a party-in-interest, in protecting the interest of public investors who hold securities in companies involved in the bankruptcy system, ensuring adequate disclosure of reorganization plans that provide for the issuance of unregistered securities, and preventing the misuse of the Bankruptcy Code's exemption from Securities Act Registration.	In furtherance of these interests and in order to prevent debtors from using the Code to avoid payment of disgorgement/restitution, the Code should be amended to: (1) Exclude disgorgement/restitution funds from property of the estate; (2) Exclude disgorgement/restitution funds from turnover provisions; and (3) Exclude disgorgement/restitution funds from the preference provisions.
NBRC- 0324	Richard H. Walker	Gen. Counsel, U.S. Securities and Exchange Commission Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		523(a)(7), 1129	1328	In this submission representing the preliminary views from SEC staff, the author states that: (1) the SEC has a strong interest in ensuring that the bankruptcy courts are not used as a "haven for wrongdoers" in subversion of congressional intent; (2) scare enforcement resources should not be diverted into unnecessary or duplicative litigation in bankruptcy court; and (3) the SEC also has an interest pursuant to § 1109(a) as a party-in-interest, in protecting the interest of public investors who hold securities in companies involved in the bankruptcy system, ensuring adequate disclosure of reorganization plans that provide for the issuance of unregistered securities, and preventing the misuse of the Bankruptcy Code's exemption from Securities Act Registration.	In furtherance of these interests, the author proposes that the Bankruptcy Code be amended to: (1) Amend § 523(a)(7) to include disgorgement so that different parts of the same governmental judgment are not subject to different discharge exceptions; (2) Apply the discharge exceptions of § 523(a)(7) to chapter 13 cases in order to make chapter 13 more attractive to debtors and encourage them to complete payments under their plans; and (3) Preclude nondebtor discharges under § 1129 because the Code, according to the author, does not permit nondebtor discharges, and because such discharges are bad public policy.
NBRC- 0324	Richard H. Walker	Gen. Counsel, U.S. Securities and Exchange Commission Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively				In this submission representing the preliminary views from SEC staff, the author states that: (1) the SEC has a strong interest in ensuring that the bankruptcy courts are not used as a "haven for wrongdoers" in subversion of congressional intent; (2) scare enforcement resources should not be diverted into unnecessary or duplicative litigation in bankruptcy court; and (3) the SEC also has an interest pursuant to § 1109(a) as a party-in-interest, in protecting the interest of public investors who hold securities in companies involved in the bankruptcy system, ensuring adequate disclosure of reorganization plans that provide for the issuance of unregistered securities, and preventing the misuse of the Bankruptcy Code's exemption from Securities Act Registration.	In furtherance of these interests, the author proposes that the Bankruptcy Code be amended to: (1) Improve the reporting system for reversals of bankruptcy decisions so that cases are not erroneously reported are precendent when they have been reversed; and (2) Improve notice to government agencies to prevent the huge delays that result when a government crediotr is not properly notified. The author also urges the NBRC to schedule a meeting devoted solely to governmental concerns because the interaction of the Bankruptcy Code and governmental activities raises unique issues.
NBRC- 0324	Richard H. Walker	Gen. Counsel, U.S. Securities and Exchange Commission Management ("NACM"), Chair, NACM Government Affairs Committee, and NACM Legislative and Bankruptcy Counsel, respectively		362, 1109		In this submission representing the preliminary views from SEC staff, the author states that: (1) the SEC has a strong interest in ensuring that the bankruptcy courts are not used as a "haven for wrongdoers" in subversion of congressional intent; (2) scare enforcement resources should not be diverted into unnecessary or duplicative litigation in bankruptcy court; and (3) the SEC also has an interest pursuant to § 1109(a) as a party-in-interest, in protecting the interest of public investors who hold securities in companies involved in the bankruptcy system, ensuring adequate disclosure of reorganization plans that provide for the issuance of unregistered securities, and preventing the misuse of the Bankruptcy Code's exemption from Securities Act Registration.	In furtherance of these interests, the author recommends that the NBRC study whether individuals should be eligible to file under chapter 11, and if so, whether eligibility standards should be promulgated for them He also recommends that the NBRC study whether it is time to adopt eligibility standards for corporate chapter 11's.
NBRC- 0325	David M. Sullivan	Attorney		541		In a recent unpublished decision, the U.S Court of Appeals for the Sixth Circuit in a "Ponzi" case, denied recovery to the victim's of a debtor's pre-petition fraud who were able to specifically identify and trace their funds (a copy of the court's opinion is attached, as well as an article about the Supreme Court's refusal to grant certiorari in this case). To prevent further cases from reaching similar outcomes, Congress needs to specifically instruct the courts that the debtor's estate does not include property that the debtor steals.	The Code should be amended so that the definition of property of the estate explcitly excludes property that was converted, embezzled, stolen or otherwise acquired by the debtor or obtained by the debtor's fraud to the extent that the property can be identified or traced using reasonable tracing methodologies.
NBRC- 0326	Sharon B. Heaton	On behalf of the Ad Hoc Committee on Municipal Bankruptcy Law Reform; Attorney				The author states that the Ad Hoc Committee on Municipal Bankruptcy Law Reform held a press conference on February 13, 1996, to discuss efforts to reform chapter 9. The author attaches a sample of articles resulting from this conference, including "Interview with AMBAC Vice President," "Panel Pushes Reform of Bankruptcy Laws to Add Flexibility," and "Panel Urges Bankruptcy Law Changes: Reform at Municipal Level Would Benefit Bondholders."	None.
NBRC- 0327	John P. Hennigan, Jr.	Professor, St. John's Univ.		28 U.S.C. §§ 158, 1291, 1292, 1334, 1452	305	The author provides a copy of an article he wrote entitled "Thoughts on Regularizing the Bankruptcy Appeals Statutes." The author concludes that the confusion besetting appealability in bankruptcy would be consdierably dissipated if the courts would adhere to the non-bankruptcy federal law of appealability unless departure is justified by some clearly-articulated peculiarity of bankruptcy litigation.	28 U.S.C. §§ 158(a), 158(d), 1291, 1292, 1334, and 1452 and 11 U.S.C. § 305 should be amended to eliminate "irregularities" and "regularize" their application. Suggested statutory language is provided.
NBRC- 0328	Joseph I. Wittman	Pres., Nat'l. Assoc. of Bankruptcy Trustees (NABT)				The author attaches NABT's response to the "U.S. General Accounting Office July 13, 1994 Report on Bankruptcy Administration-Case Receipts Paid to Creditors and Professionals." NABT's states that the statistical information compiled in the GAO report often erronoeusly implies that this fee system is ineffective and costly. NABT concludes that the statistical information presented in the GAO report is of limited value because it represents averages of all chapter 7 cases reviewed. Since percentages on either extreme can result from cases that were ineffectively administered, it is inapporpirate to conlcude that these statistics uncover any problem with the current system. NABT firmly supports the ability of trustees to employ themselves or their firm as the attorney or accountant in the asset cases they administer. This policy is administratively sound, cost effective, and provides for efficient adminstration with minimal delays. Conflicts may arise which call for outside counsel, but these cases are the exception and not the rule.	The GAO report provides little insight into chapter 7 issues, and thus is merely an interesting compilation of numbers, averages and statisics. A true analysis of the effectiveness of chapter 7 proceedings must be obtained from direct input of parties involved in the bankruuptcy process.
NBRC- 0329	Brenda K. Argoe	Pres., The Nat'l. Conf. of Bankruptcy Clerks ("NCBC")				NCBC is concerned about adequate funding of the judiciary, who is increasingly required to find fundung to cover Congessional mandates or simply to recoup money for shortfalls in the budget. Often, additional funding is raised by increasing fees to already overburdened debtors and creditors. NCBC is also concerned about the impact of the Congressional Accountability Act which would require the courts to pay overtime and establish strict compensatory time guidelines. Imposing these pay requirements could initiate budgetary crsis in the judiciary. The Act would also eliminate the conept of excepted service appointments of judicial employees, which would negatively impact the independence of the judiciary.	Clear direction is needed regarding filing and court fee increases because at present they are created on an ad hoc basis to fix immediate crises. Also, the NBRC should remember during its deliberations that the Congressional Accountability Act contains provisions governing employment of judiciary staff that would place undue financial and structural strain on the judiciary.
NBRC- 0330	Richard G. Ephgrave	Dir., Credit and Product Service, Bassett Furniture Industries, Inc.				The 90 day presumption for voidable preferences is unfair to the debtor and creditor alike, and may actually force the debtor into bankruptcy by forcing the debtor into "cash before delivery" agreements. Often, trustees severely compromise the integrity of the preference statutes by routinely making settlements on preference claims to avoid litigation or abandoning the claim entirely, leaving the creditor in the uncomfortable position of having to haggle with the trustee to negotiate a settlement.	The 90-day insolvency presumption, the author concludes, is "invalid" and should be lowered to seven days for non-insiders. Also, the ability of the trustee to make settlements to avoid litigation should be eliminated. The trustee should be allowed to cancel a preference claim if a valid defense has been proven to his satisfaction.
NBRC- 0331	Stephen W. Sather	Attorney		523(a)(1)(C)		Under § 523(a)(1)(C), a tax or customs duty "with respect to which the debtor made a fraudulent return or willfully attempted in any manner to evade or defeat such tax" is nondischargeable. This statute is so broad that practitioners cannot accurately advise their clients as to whether their debts fall within its boundaries. In some instances, the statute implicates debtors who did not intentionally fail to comply with their legal duties. Some courts have found, and the author agrees, that § 523(a)(1)(C) does not apply to these debtors. Also, as the Code does not require the U.S. to assert this exception in the bankruptcy proceeding, the debtor must either bring an adversary proceeding at his own expense or seek an administrative decision from the I.R.S. The author attaches an article which discusses this issue and the "willfulness" standard in more detail.	Section 523(a)(1)(C) should be amended to apply only to tax or customs duties with respect to which the debtor made a fraudulent return or fraudulently attempted in any manner to evade or defeat such tax. Such a standard wold protect the government from dishonest debtors while allowing those debtors who had merely mispalced priorities the fresh start envisioned by the Code.
NBRC- 0332	Nat'l. Assoc. of Chapter Thirteen Trustees	Nat'l. Assoc. of Chapter Thirteen Trustees ("NACTT")				In this statement to the NBRC, the NACTT states that certain elements (listed below) are critical to the efficeint and effective operation of the chapter 13 system. The NACTT includes an in-depth discussion of the treatment of mortgage plans under chapter 13, the appropriate disbursing agent for chapter 13 plan payments, and chapter 13 valuation issues.	NACTT urges the preservation of the following "basic elements" that have made chapter 13 work: independent and private trustees free fom political pressure and accountable to the courts; broader discharge under § 1328(a); "payroll deductions orders" to any entity; co-debtor stay under § 1301; disbursements made by the trustee; authorization to provide educational information to debtors; the confirmation process resulting in the finality of a chapter 13 plan; and a clear method of providing valuation in a chapter 13 case.
NBRC- 0333	Norma Hammes	Pres., Nat'l. Assoc. of Consumer Bankruptcy Attorneys ("NACBA")				NACBA states the government and creditor attorney contingent has been overrepresented on the NBRC Working Group panels, and that their voices have almost invariably been unilaterally reflected in the Working Group "consensus" reports.	NACBA requests that the NBRC include more consumer debtor attorneys in the Working Groups such that the number of government/creditor participants be matched by a like number of consumer debtor participants. The author provides the names of consumer debtor attorneys to be considered for inclusion. Also, NACBA requests that the Consumer Issues Working Group be afforded an opportunity to review and comment on other Working Group recommendations which would impact consumer bankruptcy issues.
NBRC- 0334	Vicent P. Zurzolo	Bankruptcy Judge (C.D. Cal.)				The author attaches his proposal to modify the employment and compensation procedures required by the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure. The author states that he believes that the compensation and reimbursememnt scheme in the Bankruptcy Code promotes inefficiencies and wastefullness. He attaches a copy of "Bankruptcy Court Decisions," which contains an article discussing this issue.	The author recommends that the Code be modified to streamline the compensation procedures, provide ongoing oversight of services and fees, and remove the burden of judicial review of compensation and reimbursement unless and until a party in interest objects.
NBRC- 0334	Vicent P. Zurzolo	Bankruptcy Judge (C.D. Cal.)		506(d)		The author poses the following question about the treatment of liens: "(1) Section 506(d) -- Does the decision of the Court in Dewsnup v. Timms, 502 U.S. 410, 112 S.Ct. 773 (1992) apply in all chapters so that liens cannot be avoided simply because the lienholder is undersecured"	None.
NBRC- 0334	Vicent P. Zurzolo	Bankruptcy Judge (C.D. Cal.)		365		The author poses the following question about the treatment of leases: "Does the rejection of a lease pursuant to 11 U.S.C. Section 365 constitute a termination of the lease and all benefits that go with it"	None.
NBRC- 0334	Vicent P. Zurzolo	Bankruptcy Judge (C.D. Cal.)		524	722	The author poses the following question: "May an individual debtor retain personal property which is encumbered by a security interest if that debtor is current on all obligations with the creditor holding the security interest yet chooses not to reaffirm that obligation under 11 U.S.C. Section 524 or to redeem the collateral pursuant to 11 U.S.C. Section 722"	None.
NBRC- 0335	Kirk Swinney	Attorney		724(b)		The author represents Texas local ad valorem tax jurisdictions in bankruptcy courts, and notes that in Texas ad valorem taxes are protected by a senior lien on all property taxed, recognizing the extreme importance of the tax base to local jurisdictions. The effect of § 724 is to totally upend the state ordered property rights at the expense of the local jurisdictions which have provided police protection, fire protection, education, roads, a judicial system, and all other forms of local government that enhance the value of the taxed property.	Section 724(b) of the Bankruptcy Code should be repealed.
NBRC- 0336	Gary Klein	Staff Attorney, Nat'l. Consumer Law Center Inc.				The author encloses a variety of documents in support of his testimony at the Consumer Working Group meeting in January, 1997, that illustrate the enormous scope of coercive and illegal reaffirmation practices by creditors in consumer cases. In particular, the documents focus on the actions of Sears, whose practices in the area of reaffirmation have generated a great deal of concern for debtor's counsel across the country.	The NBRC should take action to bring the problem of coercive behavior by creditors under control, including elimination of reaffirmation agreements and providing sanctions for creditors who violate the law.
NBRC- 0337	Jonathan V. Maxwell	County Attorney, Guilford County, North Carolina		724(b)	505	In recent years, the author has observed an increase in a number of situations where creditors, often unsecured, "gang up" on the Tax Collector in order to deprive the Tax Collector of the preferred status he is afforded by state and bankruptcy laws. Section 724 and to a lesser extent § 505 are being used in creative ways to circumvent the preferred lien status given to tax liens.	Section 724(b) should be repealed, or at least amended to prevent this section from being used to deprive the Tax Collector of preferred lien status.
NBRC- 0338	Lisa Hill Fenning	Bankruptcy Judge, Los Angeles, CA				Some standardization of federal bankruptcy exemptions is desirable. The Working Group proposal seems to be a reasonable approach, but the following concerns should be kept in mind: (1) Some wage-earner debtors have extremely large retirement funds that would qualify for exemption; (2) Unless abusive filings by creditors seeking to limit exemptions become a significant problem, there is no reason to return to holding trials on acts of bankruptcy for every contested involuntary petition.	With these concerns in mind, the author recommends (1) that the NBRC consider a cap or upper limit on the retirement fund exemption; and (2) a wait-and-see period before acts of bankruptcy are written back into the Code, or consider amending § 109(I) to make the filing an involuntary solely or primarily to limit debtor's exemptions grounds for a "bad faith" finding, justifying imposition of sanctions.
NBRC- 0339	Jerome S. Lamet	Attorney				The author writes to acknowledge receipt of the NBRC memo dated February 12, 1997, concerning "proposals for amendments to the Bankruptcy Act."	The authors states that "[w]e find that the proposals amde in your memorandum are excellent and urge the Commission to adopt these proposals in final form" (no additional details are provided).
NBRC- 0340	A. Thomas Small	Bankruptcy Judge (E.D. NC)				The author states that Chapter 11 cases can be managed without elaborate and expensive conferences, and encloses a report on four years of his bankruptcy cases which he believes demonstrates this point.	Any recommendation concerning small business should not require numerous preconfirmation status conferences and hearings because chapter 11 already provides adeqaute case management procedures.
NBRC- 0341	George J. Wallace	Attorney, on behalf of the American Financial Services Assoc. ("AFSA")		521(2)	524(c)	AFSA members have found that the Code's present regulation of chapter 7 reaffrimations is working well. However, certain "fine tuning" is needed. Some bankruptcy courts permit debtors to go through chapter 7 and keep the autombile collateral without reaffirming at the unpaid contract balance, despite the requirement of § 521(2) that the debtor's statement of intention either indicate that he or she will surrender, redeem or reaffirm. The result is "inappropriate, yet its economic significance is magnified by the new phenomenon of the "surprise bankruptcy" in which the debtor is not in default when chapter 7 is filed.	Section 521(2) should be amended to provide that the debtor is required to fulfill the statement of intention. His or her failure to do so should result in dismissal or other appropriate sanction. In the alternative, § 524(c) may be amended to clarify that consensual adjustment with the creditor through a reaffirmation is the only way other than redemption that the chapter 7 debtor can retain collateral.
NBRC- 0341	George J. Wallace	Attorney, on behalf of the American Financial Services Assoc. ("AFSA")		521(c)		The § 521(c) statement of intention is limited to consumer debts and does not cover the financing of trucks which debtors use to earn their principal income. Although such financing is not considered "consumer debt," it involves many of the same problems as those associated with consumer debt--the debtor files chapter 7 and attempts to keep the collateral without reaffirming.	The § 521(c) statement of intention should be expanded to include small business debts.
NBRC- 0341	George J. Wallace	Attorney, on behalf of the American Financial Services Assoc. ("AFSA")				The bankruptcy Code's exemption provisions are neither uniform in application from one state to another, nor fundamentally fair to creditors. Debtors often change state of residence a few months before seeking bankruptcy relief so as to secure favorable exemptions (a Wall Street Journal describing such a case is attached).	The NBRC should address the nearly complete breakdown in bankruptcy policy with respect to exemptions. Exemptions in states which "opt out" should be subjected to both a floor and a ceiling which are based on cost of living in each state.
NBRC- 0342	Stephen Tsai	Attorney				The author encloses a copy of an article he wrote on bankruptcy reform which appeared in the New Jersey Law Journal. The article, entitled "Repairs for a Broken System," concludes that the bankruptcy suffers from abusive filings and that creates the perception that debtors unfairly keep most of their assets and proceed with their lives in well-to-do or even luxurious fashion without contributing anything to their creditors.	The Bankruptcy Code should be amended to discourage abusive and unnecessary filings, and to limit the availability of the automatic stay in order to force debtors to approach bankruptcy more seriously. Suggested amendments are provided and discussed.
NBRC- 0343	Joseph A. Chrystler	Standing Chapter 12 and Chapter 13 Trustee, Western District of Michigan				The author states that the bankruptcy system is based on a level of "misguided greed" from both debtors and creditors. He attaches a copy of a letter he recently sent to nineteen creditors in a chapter 13 case, describing the details of the case and admonishing the creditors for "not doing their homework" before issuing credit cards. The author considers this case, in which two elderly creditors have over $150,000 in credit card debt, to be the most flagrant credit card abuse he has ever seen.	When issuing credit cards, creditors need to be more careful about the financial suitability of debtors.
NBRC- 0344	Marcus J. Gumz	Debtor	Cover letter from Senator Charles Grassley, attaching this submission from his constituent			The author feels that the chapter 12 bankruptcy laws are unfair and overly burdensome to debtors.	Chapter 12 should be amended to reflect the input of debtor-farmers. Also, debtors should be able to appear pro se before the bankruptcy courts.
NBRC- 0345	Philip J. Brandl	President, Nat'l. Housewares Manufacturers Assoc. ("NHMA")				NHMA members believe that the losses resulting from the failure of retail enterprises should not fall disproportionately on suppliers--all constituencies should be represented adequately in the process of reorganizing or liquidating troubled enterprises. Often, debtors "load up" on goods just prior to commencing a bankruptcy case in order to increase their asset bases. This problem is exacerbated by the generally accepted view that a lender with a floating lien on invetory receives priority over a supplier's reclamation rights.	Bankruptcy Code should be amended to prevent retailers from abusing the system at the suppliers' expense by: (1) expanding the "look back" period to a least 60 days before commencement of a case; (2) extending the reclamation period for invetory obtained on credit; (3) recognizing a supplier's right to proceeds of the sale of goods subject to reclamation; and (4) recognizing a priority for suppliers of goods over the claims of a secured lender with an interest in a debtor's inventory.
NBRC- 0345	Philip J. Brandl	President, Nat'l. Housewares Manufacturers Assoc. ("NHMA")				NHMA members are concerned about their ability to be heard in bankruptcy cases. Often creditors' committees do not represent the interests of smaller manufacturers. Also, it is often not economically feasible for NHMA members to actively participate in the case.	NHMA urges the NBRC to give meaningful attention to means of increasing the representation of smaller manufacturers in retail bankruptcies, and that consideration be given to allowing suppliers to be more informed or in control of their involvement in a bankruptcy case.
NBRC- 0345	Philip J. Brandl	President, Nat'l. Housewares Manufacturers Assoc. ("NHMA")				NHMA members are concerned that the same managers that presided over the decline of failing retail businesses often lead the businesses, largely unsupervised, through the bankruptcy process. Often, these managers continue the same inefficiencies in a bankruptcy as they did in the businesses.	NHMA urges the NBRC to consider any means of obtaining greater oversight over debtors-in-possession, such as increased creditors' committee participation or independent overseers.
NBRC- 0345	Philip J. Brandl	President, Nat'l. Housewares Manufacturers Assoc. ("NHMA")				NHMA members are concerned that the same managers that presided over the decline of failing retail businesses often lead the businesses, largely unsupervised, through the bankruptcy process. Often, these managers continue the same inefficiencies in a bankruptcy as they did in the businesses.	NHMA urges the NBRC to consider any means of obtaining greater oversight over debtors-in-possession, such as increased creditors' committee participation or independent overseers.
NBRC- 0345	Philip J. Brandl	President, Nat'l. Housewares Manufacturers Assoc. ("NHMA")				NHMA members are troubled by the ease with which enterprises can commence bankruptcy cases. It appears that a significant number of retail businesses that seek the protection of bankruptcy law could have worked out their problems without the expensieve and inequitable intervention of the bankrutpcy process.	NHMA urges the NBRC to consider recommending an explicit good faith requirement for debtors commencing bankruptcy cases, and commends the NBRC's attention to the new German bankruptcy law model.
NBRC- 0346	Richard T. Webb	President & CEO, Atlantic Financial Federal Credit Union				The author is concerned that fraud is not consdiered in determining dischargeability in chapter 13 cases as it is in chapter 7 cases. He concludes that "fraud is fruad, whether it is chapter 7 or chapter 13!"	Bankruptcy Code should be amended to treat fraud under chapter 13 in the same manner as it is treated under chapter 7.
NBRC- 0346	Richard T. Webb	President & CEO, Atlantic Financial Federal Credit Union				The author was recently involved is a case where the court advised him that "in Pennsylvania cases such as this must be represented by counsel." He inquires as to why requirements for federal bankruptcy court would vary from state to state.	Bankruptcy Code should be amended to treat cases uniformly among the states, especially with regard to requirements for counsel.
NBRC- 0347	Philip J. Hendel	Attorney				The author recommends using chapter 13 for small business cases. He states that "this is truly a business recommendation" and that he hopes that the NBRC will consider this recommendation as a viable alternative to the other suggestions currently under review.	Bankruptcy Code should be amended to expand the use of chapter 13 to include closely held corporations and other business entities.
NBRC- 0348	Grant W. Newton	Vice Pres. of the Assoc. of Insolvency Accountants ("AIA")				The AIA believes that the proposed definition of "small business" will result in many of the larger companies being forced to file under the small business provisions which would not otherwise qualify as small businesses.	A business debtor's last income tax return should be used to establish whether the business is a small business. Also, while AIA does not object to including provisions that reauire debtors to file income tax returns, it is best not to establish or enforce this provision through the definition of small business, but rather through provisions. Suggested statutory language is provided.
NBRC- 0348	Grant W. Newton	Vice Pres. of the Assoc. of Insolvency Accountants ("AIA")				AIA agrees with the Working Group proposal to consider affiliated corporate debtors as a consoldated group, but recoomends that the word "corporate" be deleted. There are cases where partnerships have been consolidated with corporations and the combined entity should be measured to determine the threshold test.	Bankruptcy Code should be amended to consider affiliated debtors as a consoldated group. Also, AIA agrees that intecompany transactions should be eliminated, and suggests basing the test on aggregate amounts.
NBRC- 0348	Grant W. Newton	Vice Pres. of the Assoc. of Insolvency Accountants ("AIA")				AIA fully supports requiring debtors to submit a uniform set of operating reports.	AIA fully supports requiring debtors to submit a uniform set of operating reports, but suggests that the focus of the cash flow statements be on cash flow from operating activities of the business, and should clearly distinguish cash flows from operations from those related to liquidation and other nonoperating, extraordinary activities. Section B should be expanded to include all chapter 11 filings.
NBRC- 0348	Grant W. Newton	Vice Pres. of the Assoc. of Insolvency Accountants ("AIA")				The Working Group's proposal for reducing the cost of administering small business chapter 11 cases will help, but will not solve all the problems associated with these cases because it would never answer the question: Is this a viable business	AIA believes that the U.S. Trustees should appoint a small business examiner to determine the viability of businesses. The examiner would have 15-20 days to make a visit to the premises, complete his initial report and file it with the court and the U.S. Trustee. The information from this report should be made available in 30 days.
NBRC- 0348	Grant W. Newton	Vice Pres. of the Assoc. of Insolvency Accountants ("AIA")				Status conferences should be held within 30 days to ascertain if the business is viable or at least take action in the larger number of cases where it is obvious reorganization is not an alternative.	None (no additional comments provided).
NBRC- 0349	Arthur J. Spector	Bank- ruptcy Judge (E.D. Mich.)				The author, whose opinion in In re Premo, 116 B.R. 515 (Bankr. E.D. Mich. 1990) discussess the issues surrounding burden of persuasion in tax claims, suggests that the burden should not fall on the taxpayer when the taxpayer is a party in the litigation. This can occur, for example, when either another creditor or the trustee is the party objecting to the tax claim. A trustee is situated no differently than the government with respect to the taxpayer's records. In such a case, the government should be treated as other creditors and be required to prove that its claim is valid.	Bankruptcy Code should be amended to provide that to the estent the benefit of a successful outcome to the disputes goes to the taxpayer, the taxpayer bears the burden of persuasion; but if a successful challenge to the tax will inure solely to other creditors of the estate, the government carries the burden.
NBRC- 0349	Arthur J. Spector	Bank- ruptcy Judge (E.D. Mich.)		1111(a)		The author supports application of the "deemed filed" rule to all chapters of the Code for federal, state and local governments. He concludes, however, that the rule should also be extended to all creditors and not just governments because most small businesses and consumer debtors do know what they owe, and thus allowing claims in uncertain amounts would do them no injustice.	Bankruptcy Code should be amended to extend the deemed filed rule to all creditors.
NBRC- 0350	Karen Gross	Professor, New York Law School				The author provides this "Preliminary Proposal" on debtor education, in which she discusses issues relating to the possible organization and funding of debtor education programs. She concludes that we are wasting an opportunity to provide a true "fresh start" if we do not eduate debtors as part of the bankruptcy process. An in-depth discussion of these issues is provided.	The author recommends that a volunteer pilot program be established in select regions of the country that would be available to chapter 7 debtors, while permitting chapter 13 trustees with education programs in effect to continue the same.
NBRC- 0351	Leonard M. Salter	Author and Chairman of the Board of Associate Editors for the "Comm. Law Bulletin"				In this article in the column entitled "Heard and Overheard," the author reports that SMR Research has attributed the increased numbers of consumer bankruptcy filings to state customs and laws affecting different levels of automobile insurance, health insurance and divorce. The article also reports that Professor Elizabeth Warren attributes the rise in bankruptcies to excessive debt load.	None.
NBRC- 0352	Bernard Shapiro	Chair, National Bankruptcy Conference		28 U.S.C. § 586	1112	The Naitonal Bankruptcy Conference makes the following comments about the Small Business Working Group proposals: (1) the use of a gross revenue bright line definition for small business is "most inappropriate," and $10 million is far too high (the author attaches a copy of the IRS's definition of "gross income"); (2) requiring 4-5 status hearings complicates and adds unnecessary cost to the bankruptcy process; (3) the proposed amendments to 28 U.S.C. § 586 and 11 U.S.C. § 1112 are well founded, but if the proposeals are adopted, the "overlay of the balance of the small business proposal" is unncessary; (4) the 45-day period for filing a plan is far too short; (5) the court should have greater flexibility to dispense with the disclosure statement altogether in cases where there is no publically-held debt or equity; (6) the proposal with regard to "designated real estate debtor" is "very bad" because, if enacted, every lender would have the leverage to cause every debtor to make such an election; and (7) NBC generally favors Bob Maritn's proposal to modify the procedure for appointment of a trustee, but is opposed to shifting the burden to the debtor to prove that the appointment of a trustee would not be in the best interests of general creditors because the provision would substantially change the Code and goes beyond the objective of weeding out small business/abusive cases.	Small business shold be defined as a business with less than $4 miliion in debt, less than 10 employees, and gorss revenues of less than $3 million; (2) Bankruptcy process should be simplified to have less stautus conferences; (3) the time period for filing a plan should be 60 days or more; (4) NBC generally favors Bob Maritn's proposal to modify the procedure for appointment of a trustee, but is opposed to shifting the burden to the debtor to prove that the appointment of a trustee would not be in the best interests of general creditors.
NBRC- 0353	Undersigned Bankruptcy Attorneys, Eastern District of Missouri	Fourteen Bankruptcy Attorneys				The signatory attorneys "have review Judge William H. Brown and Professor Lawrence Ponoroff's Memorandum, dated January 3, 1997, outlining their revisions to federal bankruptcy law to create a single, Nat'l.exemption scheme."	Support the proposed revisions to federal bankruptcy law to create a single, Nat'l.exemption scheme, and encourage the Commission to adopt the proosal in its entirety.
NBRC- 0354	David J. Bardin	Washington Counsel for the Cult Awareness Network	Background and discussion related to the author's client's bankruptcy			The author raises concerns about the impact of bankruptcy laws on non-profit corporations, like his client the Cult Awareness Network, who declare bankruptcy and are faced with the prospect of being forced to sell private files. The author asks the NBRC to consider the interaction between bankruptcy laws and constitutional rights, such as the First Amendment rights of people who choose to associate with his client and whose privacy would be invaded by the sale of these files.	The NBRC should consider the impact of bankruptcy laws on non-profit corporations, such as the Cult Awareness Network, who declare bankruptcy and are faced with being forced to sell private files.
NBRC- 0355	A. Thomas Small	Bankruptcy Judge (E.D. NC)		1121(e)	1125(f)	The Working Group's proposal is too heavily weighted toward identifying the bad chapter 11 cases to the detriment of those chapter 11 debtors who have a chance at reorganization. The Code needs minor amendments to give judges better case management tools, and not major adjustments that complicate and delay the bankruptcy process. The author commends to the NBRC the Eastern District of North Carolina's "fast track" program, which he states has worked well.	Section 1121(e) should be amended to read "The court may fix a date by which a plan shall be filed," and § 1125(f) should be amended to read "The court may conditionally apporve a disclosure statement subject to final approval after notice and hearing...." The debtor should be allowed 90 days to file a plan, and the court shold not be required to file numerous preconfirmation hearings. Also, nothing is gained by shifting the burden of persuasion to the debtor prior to confirmation.
NBRC- 0356	Edward D. Jellen	Chief Judge, U.S. Bankruptcy Court, Northern District of California				The author calls the Commission's attention to the issue of whether "findings" made at a state court default hearing should be given collateral estoppel effect in subsequent dischargeability litigation under Bankruptcy Code § 523(a). Most states, he notes, follow the traditional five part test for collateral estoppel. Some states, however, have broadly construed the "actually litigated" requirement to apply when the defendant has had the opportunity to litigate, even if the defendant has not litigated. The broad reading of the "actually litigated" requirement is a trap for unwary and ignorant debtors that annot afford counsel and do not realize the implicaitons of default fraud judgments.	Bankruptcy Code should be modified to provide that an issue is acutally litigated under the standard five part test before the resulting judgment can be declared nondischargeable based on collateral estoppel.
NBRC- 0357	David Epstein	National Bankruptcy Conference		365		In these preparatory materials for the December 18, 1996 plenary session on Chapter 11, the author outlines on behalf of the National Bankruptcy Conference issues relating to the operation of 11 U.S.C. § 365.	The author submits this issue outline for the NBRC's consideration.
NBRC- 0358	Sandra Ward	Reporter, Barron's Financial Weekly				In her article entitled "Bailing Out: Bankruptcy, Once a Disgrace, Has Become As American as the Fourth," the author attributes rising bankruptcy rates to "easy money"--in short, the proliferation of credit cards. Some experts, she reports, also attribute the rise to "an attitude of entitlement."	None.
NBRC- 0359	Jane Bryant Quinn	Reporter, Newsweek				In her article entitled "The Check is in the Mail," the author assets that "There's no credit crisis. Most Americans don't let their consumer debt get out of hand." She states that surges in credit card balances are attribuatble to holiday purchases, and that balances often ebb and flow in this manner. Credit card issuers do, however, often issue cards to "marginal borrowers," which leads to higher delinquency rates. She reports that the most critical factors in bankruptcy fluctuations appear to be state and local public policy choices.	None.
NBRC- 0360	Daniel J. Bussel	Author, UCLA Law Review article				In his UCLA Law Review article entitled "Coalition Building Through Bankruptcy Creditors' Committees," the author states that the legal framework governing the creditors' committee has failed to keep up with the changes in bankruptcy law. The committee, however, can be an effective device for building the consensus necessary to the successful resolution of reorganization of cases.	The author concludes that the next step in the evolution of the creditors' committee is "to embrace the goal of consensus building, and, with that goal in mind, continue to evolve the institution so it can become even more effective."
NBRC- 0361	Drusilla Strobel					The author states that that many debtors who declare bankruptcy under chapter 7 earn $50,000 to $100,000 a year and could afford to pay at least some of their debts back. Instead, they file under chapter 7, and the avereage bill paying person ends up paying higher prices to cover the losses resulting from these bankruptcies.	Bankruptcy Code should be amended to permit only those debtors with "extenuating circumstances," such as permanently disability or illness than prevents the debtor from ever working again, to file under chapter 7. Otherwise, the debtor should only be permitted to file under chapter 13.
NBRC- 0362	John Schmeltzer	Chicago Tribune Staff Writer				In this article entitled "Credit Easy; Bankruptcy Easy; Lessons Come Harder," the author writes that "bankruptcy is becoming the solution of first resort for Americans faced with piles of debt." Moreover, American debtors face few consequences, if any. He attributes this change to decreasing stigma about bankruptcy, increased credit availability, and the 1978 amendments to the exemption provisions of the Bankruptcy Code.	None.
NBRC- 0363	Francis A. Monaco, Jr.	For Walsh & Monzack, P.A.		28 U.S.C. § 1408(1)		Allowing a corporation to file a chapter 11 petition in the district of the state where it is incorporated is not inherently wrong, especially given the nationwide operations of large corporations. Geographically distant parties will always be inconvenienced by a chapter 11 filing, no matter where it is filed. And, to the extent that a case truly does not belong in a certain jurisdiction, 28 U.S.C. § 1412 will remedy that problem. The proposed venue amendment will actually cause more problems than it solves because it would decrease the debtor's flexibility to choose the most appropriate forum.	Opposes proposed amendment to the corporate venue provisions.
NBRC- 0364	Bruce Felton	Reporter, "Minding Your Business" column, The New York Times				In this article entitled "Going Bankrupt: The Scarlet 'B' or the Great Escape," the author answers a reader's questions about whether decalring bankruptcy is a practical solution. He observes that "The Chapter 7 filing process is not as onerous as you might expect," and that the toughest part of bankruptcy may be the sense of shame and failure it often brings.	The author concludes that for many people declaring personal bankruptcy is an effective way to escape situations they cannot control.
NBRC- 0365	Robert U. Sattin	Attorney		28 U.S.C. § 1408(1)		Delaware courts are among the most professional and civil bankruptcy courts in which to appear, and Delaware judges frequently agree to changes in venue when necessary. As such, changes in the corporate venue provisions which are aimed at the Delaware courts are unnecessary.	Opposes any efforts to change the venue provisions based on elimination of place of incorporation.
NBRC- 0366	N. Dwight Cary	Attorney		28 U.S.C. § 1408(1)		Delaware Bankruptcy Courts process bankruptcy cases with efficiency, diligence and speed. Rather than eliminate Delaware as a competitor, bankruptcy courts across the country should emulate the example set by the Delaware Bankruptcy Court and administer superior jurisprudence.	Opposes proposed amendment to the Code that would eliminate venue based on place of incorporation.
NBRC- 0367	Susan Block-Lieb	Professor, Seton Hall University				The author provides the paper, entitled "The Empirical Case for Article III Bankruptcy Courts," in which she asserts that the bankruptcy jurisdictional provisions enacted with the 1984 Amendments have created a cumbersome and over-complicated system which permits litigants to squander the scarce resources of a bankruptcy estate on resolution of issues of procedure and jurisdiction.	Supports amendment to give bankruptcy judges Article III status.
NBRC- 0368	Kenneth N. Klee	Robert Braucher Visiting Professor from Practice, Harvard Law School	Cover letter from Sam Gerdano, Exec. Dir., ABI enclosing this submission			The author observes that in the debate over the success of chapter 11, neither side has defined the concept of success. To sharpen the pending debate, he has written this 98-page paper addressing the concept of success in business bankruptcies. He concludes that success must be defined by the optimization of social enterprise value rather than the direct, quantifiable, economic value for monied interests. We must also consider the interests of employees, communities, and others who do not have a direct right to payment against the debtor.	Bankruptcy Code would be more successful if it excluded the cases where the cost to society is likely to be far greater than the benefit from allowing these cases to proceed, such as those cases where the stakes are small. The author also recommends that the Code be amended: (1) to deter fraud by requiring private trustees to investigate a certain number of cases per year, and (2) to create a threshold requirement allowing businesses to file under chapter 11 only if they are good candiadtes to bear the cost of the chapter 11 process and emerge rehabilitated.
NBRC- 0369	Sybil Niden Goldrich	Author of article in the Fresno Bee				The author tells of her personal history with defective Dow Corning breast implants, and states that Dow Corning has used chapter 11 to avoid indefinitely paying money owed to women for damaging their health. She adds that Dow Corning has used the bankruptcy to post some of its highest earning quarters ever.	Bankruptcy Code should be amended to prevent companies from using the Code to "put its own survival ahead of ethical considerations."
NBRC- 0370	Patrice Wendling	Reporter, The Capital Times				In this article entitled "Personal Bankruptcies Surging Upward," the author presents statistics from the Bankruptcy Court for the Western District of Wisconsin that indicate that bankruptcy filings in 1996 were up 52 percent from just two years ago. She reports that personal bankruptcies made up the bulk of these filings.	None.
NBRC- 0371	Jean Braucher	Author of Letter to the Editor in the Wall Street Journal, and University of Cincinnati Law School Professor				In this editorial, the author responds to a previous editorial from Diana Culp Bork, who had attributed the rise in personal bankruptcies to a decrease in social stigma. Ms. Bork recommended that this problem be resolved by forcing more debtors to choose chapter 13 over chapter 7. The author concludes that Ms. Bork's editorial was flawed and incorrect because economic factors such as downsizing have caused the increase in bankruptcy filings.	The author concludes that debtors should not be forced to choose chapter 13 over chapter 7 because many debtors are financially strapped, and "adopting legal changes to catch the small fraction of cases involving abuse won't change that fact and could impose large costs on the bankruptcy system."
NBRC- 0371	Author of Letter to the Editor in the Wall Street Journal, and University of Wisconsin Law School Professor					In this editorial, the author responds to a previous editorial from Diana Culp Bork, who had attributed the rise in personal bankruptcies to a decrease in social stigma. Ms. Bork recommended that this problem be resolved by forcing more debtors to choose chapter 13 over chapter 7. The author cautions that Ms. Bork's proposal may be too radical of a change, and that we must first learn why chapter 13 debtors sometimes unable to obtain discharges. He notes that there are other approaches to limiting abuse by debtors, and that the "democratization of credit" has at least in part encouraged such abuse.	The author concludes that debtors should not be forced t choose chapter 13 over chapter 7 because more moderate, measured remedies are available to combat bankruptcy fraud.
NBRC- 0371	Nick Rayes	Author of Letter to the Editor in the Wall Street Journal; Bankruptcy Attorney				In this editorial, the author responds to a previous editorial from Diana Culp Bork, who had attributed the rise in personal bankruptcies to a decrease in social stigma. Ms. Bork recoomended that this problem be resolved by forcing more debtors to choose chapter 13 over chapter 7. The author disagrees with Ms. Bork's conclusions, stating that the rise in bankruptcies is the result of excessive credit card debt. He argues that credit card companies must share part of the responsilibility for these filings.	The author concludes that debtors should not be forced to choose chapter 13 over chapter 7 because creditors already have adequate means for combatting chapter 7 bankruptcy fraud. If a bank feels that there is "substantial abuse" by chapter 7 filers, they have the right to contest the discharge of the debt owed to them.
NBRC- 0372	Norma Hammes	President, Nat'l. Assoc. of Consumer Bankruptcy Attorneys ("NACBA")				The author provides this summary of the presentation she will be making to the NBRC on Feb. 21st, 1997. In her testimony, she will state that the NBRC's agenda has been largely driven by creditor proposals such as state exemptions, limits on stripdown of liens, and limits on dischargeability. NACBA is most concerned that the Commission has been looking in all the wrong places to find solutions to the most obvious means of improving consumer bankruptcy--enhancing the incentives for debtors to elect chapter 13 relief.	The NBRC could accomplish a great deal if it would recommend to Congress changes to the Code that would increase incentives and decrease disincentives for debtors to elect chapter 13 relief.
NBRC- 0373	Nat'l. Consumer Law Center Inc.	Nat'l. Consumer Law Center Inc. ("NCLC")				The NCLC believes that a significant majority of debtors are having real financial problems and need help. Famalies across the country are facing economic pressures, and they need a fair opportunity to get an effective fresh start. The fresh start is the cornerstone of bankruptcy, and trends which have undermined its effectiveness should be reversed.	Bankruptcy Code should be amended to reverse those trends which are eroding the fresh start: (1) discharge exceptions should be limited; (2) reaffirmations should be eliminated or at least restricted; (3) groundless dischargeability challenges should be controlled; (4) protections against post-bankruptcy discrimination should be clarified and strengthened; and (5) effective exemptions are necessary in states which opt out of the federal scheme.
NBRC- 0373	Nat'l. Consumer Law Center Inc.	Nat'l. Consumer Law Center Inc. ("NCLC")				The NCLC believes that a significant majority of debtors are having real financial problems and need help. Famalies across the country are facing economic pressures, and they need a fair opportunity to get an effective fresh start. Many debtors who choose chapter 13 fail. The Commission should examine ways to reduce the chapter 13 failure rate by making chapter 13 cheaper and more effective.	Bankruptcy Code should be amended to make chapter 13 cheaper and more effective: (1) trustees should not exceed the actual costs of administerng chapter 13 cases; (2) interest on arrears should be eliminated; (3) stripdown of non-purchase money hme mortgages should be allowed and valuation standards should be set at liquidation value; (4) incentives should be available to encourage consensual modification of secured claims; (5) statutory sanctions and attorneys fees are necessary to control proof of claim abuses; (6) ability to pay should not be interpreted to require payment of a fixed percentage of unsecured claims; and (7) an effective superdischarge should be restored.
NBRC- 0373	Nat'l. Consumer Law Center Inc.	Nat'l. Consumer Law Center Inc. ("NCLC")				The NCLC notes that bankruptcy is the only significant American legal system that bars access to those who are too poor to afford its filing fees. The cost of filing has greatly increased over the years, and more and more debtors find themselves too poor to afford the fees.	The in forma pauperis program has worked well in the jurisdictions where it has been tested and should be expanded to all jurisdictions.
NBRC- 0374	Richard Carrera	Attorney				Some confusion has arisen over how to treat unpaid attorneys fees that were earned in connection with the filing of a chapter 7 bankruptcy petition. Some attorneys only collect a portion of the fee before filing their clients' petitions, and the Code is unclear as to how the debt for the reamining fees should be addressed.	To clarify treatment of these attorneys fees, the Code should be amended to provide that such fees, to the extent that they were earned in connection with the filing of a chapter 7 bankruptcy petition, are nondischargeable debts owed by the debtor in that bankruptcy.
NBRC- 0375	Thomas J. King	Chapter 12 Standing Trustee in Bankruptcy				The decisions made in the 6th and 8th Circuits in recent cases in allowing debtor direct payments are having a devestating effect on chapter 12 trustees. While the courts seem to think that the trustee's work load has diminished, in reality the compensation is zero but the trustee continues to have the duty of monitoring the case, attending the hearings for confirmation and post-confirmation matters and administering the case including providing information to anyone who calls and desires such information. In short, these cases have turned the chapter 12 standing trustee into a complete pro bono operation, and is driving trustees to resign.	Bankruptcy Code should be amended to provide for proper compensation of chapter 12 standing trustees.
NBRC- 0376	David S. Kennedy	Chief Bankruptcy Judge (W.D. Tenn.)	Copy of an article from the ABI Journal entitled "Dual Bankruptcy System Can Only Hurt Consumer Debtors"			The proposed basic bankruptcy concept contemplates a complete "overhaul" of the bankruptcy system, a purpose which was not intended when Congress created the Commission.	The consumer bankruptcy system does not need a complete overhaul, such as that conteplated in the proposed Basic Bankruptcy Concept. Rather, the judicial appellate process and future legislative fine-tuning will ultimately produce more consistentcy, uniformity and predictability.
NBRC- 0377	Lawrence Ponoroff	Professor, Tulane Law School; presenting a paper by Mr. Ponoroff and Judge William Houston Brown				The author attaches a paper he co-wrote on exemption limitations. In this paper, the authors state that a uniform system of exemptions is preferable to a floor and ceiling system because exemption policy should be based on Nat'l.policy concerns, and not regional economic needs. A uniform system would also be the only sensible response to the increasing chaos and inconsistency in exemption case law.	Bankruptcy Code should be amended to provide a uniform system of exemptions rather than a floor and ceiling approach.
NBRC- 0378	New York Law Journal	Corporate Update column, The New York Law Journal (author not listed)				In this article entitled "Lawyers Wary of New System Begun This Month," the author reports that "[the Bankruptcy Appellate Panel] program begun this month in the Second Circuit is aimed at speeding up bankruptcy appeals and bringing a degree of specialization to the process." The program, however, has met skepticism from local bankruptcy attorneys who say the problems intended to be corrected do not exist in the Second Circuit.	None.
NBRC- 0379	Janie Locke Anderson	Reporter, The Bankruptcy Strategist		28 U.S.C. § 1408(1)		In this article entitled "Determining the Proper Venue for a Bankruptcy Case," the author provides a review of issues relating to the determination of venue. In particular, she notes that ficticious entities do not necessarily have meaningful contacts with their residence, while individual debtors often do, and often do not have the resources to travel to distant venues.	In recognition of this "common sense distinction" between entities and individuals, the author recommends that the venue provisions be amended to delete the reference to domocile or residence as a basis for determining venue for ficticious entities.
NBRC- 0380	Cecelia Morris	Clerk of the Bankruptcy Court, Southern District of New York	Cover letter from Susan Jensen- Conklin			The author reports on an innovative electronic filing system that was going into effect on a pilot basis in the Southern District of New York. She describes this system as one of the most advanced in the nation and projected that it would revolutionize bankruptcy practice. In this memorandum, she provides background on this system.	The NBRC should consider the impact of new electronic filing systems on the bankruptcy system.
NBRC- 0381	Philip J. Hendel	Attorney				In this paper entitled "The U.S. Trustee System: Important Issues and Potential Solutions for Consideration by the Bankruptcy Review Commission," the author states that the U.S. Trustee program is working quite well despite occasional "glitches" which are bound to occur in any nationwide system which is implemented in a short span of time.	To improve the overall functioning of the U.S. Trustee Program, the author recommends the following: adequte funding for proper field leadership; Congress must be vigilant in ensuring the Program remains non-politcal; and the Director of EOUST should be elevated to the position of Assistant Attorney General in order to improve the Program's image with members of Congress.
NBRC- 0382	Nat'l. Assoc. of Bankruptcy Trustees	Nat'l. Assoc. of Bankruptcy Trustees ("NABT")				NABT supports the current system, which separates chapter 7 and chapter 13 proceedings (prior position paper is attached). However, NABT has concerns about the "asset-based" basic bankruptcy model approach proposed by Professor Warren. This model would require an entirely new structure of administration, policing, and payment, which may actually complicate the already complicated bankruptcy system.	NABT encourages the NBRC to examine the practical effect of a basic bankruptcy system, particularly from the position of the chapter 7-like trustee, who would be required to administer the system. The volume of cases could substanitally increase and could have the effect of hindering or delaying administration and/or liquidation of the estate.
NBRC- 0383	Joseph I. Wittman	President, Nat'l. Assocation of Bankruptcy Trustees ("NABT"), Working Group of Service and Ethics				NABT presents four issue papers which discuss how the Office of the U.S. Trustee, Standing/Panel Trustees, and trustees in general work. The papers are entitled "Chapter 7 Case Administration," "Fee Guidelines--Where Did They Come From and How Will They Affect Us," "Is Mere Negligence Enough A Discussion of the Status of Derived Judical Immunity for Bankruptcy Trustees," and "NABT Separate Chapter 7 and Chapter 13 Proceedings" (previously submitted).	These papers conclude that: (1) Panel trustees are the "front line" of all bankruptcy cases; (2) trustees generally believe that audits are beneficial to everyone; (3) close application of fee guidelines to panel trustees will increase costs to estates and taxpayers; (4) the resources of the U.S. Trsutee should not be used to review thousands of unnecessary fees applications each year; and (5) little progress has been made since the enactment of the Bankruptcy Code to provide a uniform standard of care governing trustee personal liability.
NBRC- 0384	American Bankruptcy Institute	American Bankruptcy Institute ("ABI")				ABI presents this "Report on the State of the American Bankruptcy System," which is the capstone of ABI's three-year Bankruptcy Reform Study Project. The Project's efforts culminated with a 65-question survey covering a broad spectrum of possible areas of reform. The study indicates that: (1) in general, the Code of 1978 is working well; and (2) probelms of delay, excessive costs, unfairness, and abuse need to be addressed in the current round of reforms.	ABI recommnds: (1) strict deadlines for dismissal or appointment of trustees to help combat abuse; (2) reorganization of chapter 11 policy to provide stricter time limits, elimination of non-viable debtors, and reduction of excessive professional fees; (3) relaxing eligibility requirements for consumer reorganizations under chapter 13, and providing time limits, limited discharge and uniform Nat'l.exemptions; (4) high standards of integrity for all professionals; (5) a balance between creditors' and debtors' rights, and equality of distribution; and (6) not adopting priority classes of claimants.
NBRC- 0384	American Bankruptcy Institute	American Bankruptcy Institute ("ABI")				ABI presents this "Report on the State of the American Bankruptcy System," which is the capstone of ABI's three-year Bankruptcy Reform Study Project. The Project's efforts culminated with a 65-question survey covering a broad spectrum of possible areas of reform. The study indicates that: (1) in general, the Code of 1978 is working well; and (2) probelms of delay, excessive costs, unfairness, and abuse need to be addressed in the current round of reforms.	ABI recommnds: (1) strict deadlines for dismissal or appointment of trustees to help combat abuse; (2) reorganization of chapter 11 policy to provide stricter time limits, elimination of non-viable debtors, and reduction of excessive professional fees; (3) relaxing eligibility requirements for consumer reorganizations under chapter 13, and providing time limits, limited discharge and uniform Nat'l.exemptions; (4) high standards of integrity for all professionals; (5) a balance between creditors' and debtors' rights, and equality of distribution; and (6) not adopting priority classes of claimants.
NBRC- 0384	American Bankruptcy Institute	American Bankruptcy Institute ("ABI")				ABI presents this "Report on the State of the American Bankruptcy System," which is the capstone of ABI's three-year Bankruptcy Reform Study Project. The Project's efforts culminated with a 65-question survey covering a broad spectrum of possible areas of reform. The study indicates that: (1) in general, the Code of 1978 is working well; and (2) probelms of delay, excessive costs, unfairness, and abuse need to be addressed in the current round of reforms.	ABI recommnds: (1) strict deadlines for dismissal or appointment of trustees to help combat abuse; (2) reorganization of chapter 11 policy to provide stricter time limits, elimination of non-viable debtors, and reduction of excessive professional fees; (3) relaxing eligibility requirements for consumer reorganizations under chapter 13, and providing time limits, limited discharge and uniform Nat'l.exemptions; (4) high standards of integrity for all professionals; (5) a balance between creditors' and debtors' rights, and equality of distribution; and (6) not adopting priority classes of claimants.
NBRC- 0384	American Bankruptcy Institute	American Bankruptcy Institute ("ABI")				ABI presents this "Report on the State of the American Bankruptcy System," which is the capstone of ABI's three-year Bankruptcy Reform Study Project. The Project's efforts culminated with a 65-question survey covering a broad spectrum of possible areas of reform. The study indicates that: (1) in general, the Code of 1978 is working well; and (2) probelms of delay, excessive costs, unfairness, and abuse need to be addressed in the current round of reforms.	ABI recommnds: (1) strict deadlines for dismissal or appointment of trustees to help combat abuse; (2) reorganization of chapter 11 policy to provide stricter time limits, elimination of non-viable debtors, and reduction of excessive professional fees; (3) relaxing eligibility requirements for consumer reorganizations under chapter 13, and providing time limits, limited discharge and uniform Nat'l.exemptions; (4) high standards of integrity for all professionals; (5) a balance between creditors' and debtors' rights, and equality of distribution; and (6) not adopting priority classes of claimants.
NBRC- 0384	American Bankruptcy Institute	American Bankruptcy Institute ("ABI")				ABI presents this "Report on the State of the American Bankruptcy System," which is the capstone of ABI's three-year Bankruptcy Reform Study Project. The Project's efforts culminated with a 65-question survey covering a broad spectrum of possible areas of reform. The study indicates that: (1) in general, the Code of 1978 is working well; and (2) probelms of delay, excessive costs, unfairness, and abuse need to be addressed in the current round of reforms.	ABI recommnds: (1) strict deadlines for dismissal or appointment of trustees to help combat abuse; (2) reorganization of chapter 11 policy to provide stricter time limits, elimination of non-viable debtors, and reduction of excessive professional fees; (3) relaxing eligibility requirements for consumer reorganizations under chapter 13, and providing time limits, limited discharge and uniform Nat'l.exemptions; (4) high standards of integrity for all professionals; (5) a balance between creditors' and debtors' rights, and equality of distribution; and (6) not adopting priority classes of claimants.
NBRC- 0384	American Bankruptcy Institute	American Bankruptcy Institute ("ABI")				ABI presents this "Report on the State of the American Bankruptcy System," which is the capstone of ABI's three-year Bankruptcy Reform Study Project. The Project's efforts culminated with a 65-question survey covering a broad spectrum of possible areas of reform. The study indicates that: (1) in general, the Code of 1978 is working well; and (2) probelms of delay, excessive costs, unfairness, and abuse need to be addressed in the current round of reforms.	ABI recommnds: (1) strict deadlines for dismissal or appointment of trustees to help combat abuse; (2) reorganization of chapter 11 policy to provide stricter time limits, elimination of non-viable debtors, and reduction of excessive professional fees; (3) relaxing eligibility requirements for consumer reorganizations under chapter 13, and providing time limits, limited discharge and uniform Nat'l.exemptions; (4) high standards of integrity for all professionals; (5) a balance between creditors' and debtors' rights, and equality of distribution; and (6) not adopting priority classes of claimants.
NBRC- 0384	American Bankruptcy Institute	American Bankruptcy Institute ("ABI")				ABI presents this "Report on the State of the American Bankruptcy System," which is the capstone of ABI's three-year Bankruptcy Reform Study Project. The Project's efforts culminated with a 65-question survey covering a broad spectrum of possible areas of reform. The study indicates that: (1) in general, the Code of 1978 is working well; and (2) probelms of delay, excessive costs, unfairness, and abuse need to be addressed in the current round of reforms.	ABI recommnds: (1) strict deadlines for dismissal or appointment of trustees to help combat abuse; (2) reorganization of chapter 11 policy to provide stricter time limits, elimination of non-viable debtors, and reduction of excessive professional fees; (3) relaxing eligibility requirements for consumer reorganizations under chapter 13, and providing time limits, limited discharge and uniform Nat'l.exemptions; (4) high standards of integrity for all professionals; (5) a balance between creditors' and debtors' rights, and equality of distribution; and (6) not adopting priority classes of claimants.
NBRC- 0384	American Bankruptcy Institute	American Bankruptcy Institute ("ABI")				ABI presents this "Report on the State of the American Bankruptcy System," which is the capstone of ABI's three-year Bankruptcy Reform Study Project. The Project's efforts culminated with a 65-question survey covering a broad spectrum of possible areas of reform. The study indicates that: (1) in general, the Code of 1978 is working well; and (2) probelms of delay, excessive costs, unfairness, and abuse need to be addressed in the current round of reforms.	ABI recommnds: (1) strict deadlines for dismissal or appointment of trustees to help combat abuse; (2) reorganization of chapter 11 policy to provide stricter time limits, elimination of non-viable debtors, and reduction of excessive professional fees; (3) relaxing eligibility requirements for consumer reorganizations under chapter 13, and providing time limits, limited discharge and uniform Nat'l.exemptions; (4) high standards of integrity for all professionals; (5) a balance between creditors' and debtors' rights, and equality of distribution; and (6) not adopting priority classes of claimants.
NBRC- 0384	American Bankruptcy Institute	American Bankruptcy Institute ("ABI")				ABI presents this "Report on the State of the American Bankruptcy System," which is the capstone of ABI's three-year Bankruptcy Reform Study Project. The Project's efforts culminated with a 65-question survey covering a broad spectrum of possible areas of reform. The study indicates that: (1) in general, the Code of 1978 is working well; and (2) probelms of delay, excessive costs, unfairness, and abuse need to be addressed in the current round of reforms.	ABI recommnds: (1) strict deadlines for dismissal or appointment of trustees to help combat abuse; (2) reorganization of chapter 11 policy to provide stricter time limits, elimination of non-viable debtors, and reduction of excessive professional fees; (3) relaxing eligibility requirements for consumer reorganizations under chapter 13, and providing time limits, limited discharge and uniform Nat'l.exemptions; (4) high standards of integrity for all professionals; (5) a balance between creditors' and debtors' rights, and equality of distribution; and (6) not adopting priority classes of claimants.
NBRC- 0384	American Bankruptcy Institute	American Bankruptcy Institute ("ABI")				ABI presents this "Report on the State of the American Bankruptcy System," which is the capstone of ABI's three-year Bankruptcy Reform Study Project. The Project's efforts culminated with a 65-question survey covering a broad spectrum of possible areas of reform. The study indicates that: (1) in general, the Code of 1978 is working well; and (2) probelms of delay, excessive costs, unfairness, and abuse need to be addressed in the current round of reforms.	ABI recommnds: (1) strict deadlines for dismissal or appointment of trustees to help combat abuse; (2) reorganization of chapter 11 policy to provide stricter time limits, elimination of non-viable debtors, and reduction of excessive professional fees; (3) relaxing eligibility requirements for consumer reorganizations under chapter 13, and providing time limits, limited discharge and uniform Nat'l.exemptions; (4) high standards of integrity for all professionals; (5) a balance between creditors' and debtors' rights, and equality of distribution; and (6) not adopting priority classes of claimants.
NBRC- 0385	Nancy F. Atlas	District Judge, Texas				Mediation is a valuable tool that needs to be more fully utilized in the bankruptcy process. Draft copies of suggested mediation legislation, as well as correspondence from the American Bar Assoc. proposing and discussing the use of mediation, are attached.	Mediation should be used in the bankruptcy process. Certain issues, however, that are fundamental to bankruptcy policy or have a strong influence on the case should not be subject to mediation.
NBRC- 0386	Nat'l. Assoc. of Credit Management	Nat'l. Assoc. of Credit Management ("NACM")				In this statement entitled "Issues Involving Governmental Agencies and Bankruptcy," the NACM expresses the following conerns about government agencies in the bankruptcy process: the presence of government agencies on creditors' committees could inhibit or frustrate the work of the committees because the government's agenda is often different from that of other unsecured creditors; also, government agecies are already represented adequately by attorneys in the bankruptcy process.	Code should be amended to prevent government agencies from sitting as members of creditors' committees.
NBRC- 0386	Nat'l. Assoc. of Credit Management	Nat'l. Assoc. of Credit Management ("NACM")				In this statement entitled "Issues Involving Governmental Agencies and Bankruptcy," the NACM expresses the following conerns about government agencies in the bankruptcy process: the U.S. Trustee's office should be more involved with high profile cases, especially where there is no active creditors' committee. The Trustee's Office should monitor the case, and funds could be diverted from cases where the interests are already adequately represented to those cases that would not otherwise be large enough to warrant monitoring.	Code should be amended to provide that the U.S. Trustee's Office would more actively monitor high profile cases.
NBRC- 0386	Nat'l. Assoc. of Credit Management	Nat'l. Assoc. of Credit Management ("NACM")				In this statement entitled "Issues Involving Governmental Agencies and Bankruptcy," the NACM expresses the following conerns about government agencies in the bankruptcy process: certainty needs to be created with respect to the nature, extent and status of environmental claims.	Code should be amended to provide that environmental claims should have no status greater than a general unsecured creditor.
NBRC- 0386	Nat'l. Assoc. of Credit Management	Nat'l. Assoc. of Credit Management ("NACM")				In this statement entitled "Issues Involving Governmental Agencies and Bankruptcy," the NACM expresses the following conerns about government agencies in the bankruptcy process: the expansion of priority status to government claims only serves to inhibit and frustrate the ability of businesses to successfully reorganize.	Government claims should not be given expanded status.
NBRC- 0386	Nat'l. Assoc. of Credit Management	Nat'l. Assoc. of Credit Management ("NACM")				In this statement entitled "Issues Involving Governmental Agencies and Bankruptcy," the NACM expresses the following conerns about government agencies in the bankruptcy process: the role of the Pension Benefit Guaranty Corporation needs to be balanced with the needs of debtors and creditors.	Code should be amended to curtail excessive paperwork assocaited with pensions, and unfunded pension benefits should have no rights greater than unpaid obligations to other unsecured creditors.
NBRC- 0386	Nat'l. Assoc. of Credit Management	Nat'l. Assoc. of Credit Management ("NACM")				In this statement entitled "Issues Involving Governmental Agencies and Bankruptcy," the NACM expresses the following conerns about government agencies in the bankruptcy process: "consideration should be given for the ability of a reorganizaed debtor to have the use of net operating loss carried forwards, unaffected by forgiveness of debt or the transfer of ownership pursuant to a confirmed plan of reorganization."	No additional discussion provided.
NBRC- 0387	Nat'l. Assoc. of Credit Management	Nat'l. Assoc. of Credit Management ("NACM")				In this statement entitled "Position on Small Businesses in Bankruptcy," the NACM expresses concern about the cost, delay and administration of small business bankruptcies. However, the NACM concludes that "it is best for its members and the economy in general for legitimate, honest businesses to be able to reorganize and continue with operations, even if trade creditors are unable to receive full payment of their debts." Also, more small businesses wold be encouraged to use the reorganization process if there were procedures in place which would facilitate their reorganization cases.	Code should be amended to provide sufficient guidelines to protect creditors from the dishonest or unscrupulous business debtor seeking to manipulate the system at the expense of creditors.
NBRC- 0388	George Brody	Bankruptcy Judge (S.D. Cal.)				Chapter 13 is based on the false premise that debtors are accorded certain advantages in order to encourage them to repay their debt. In reality, debtors just use chapter 13 to stay foreclosure of a home, strip down and refinance automibile debt, obtain the super-dischaarge, and then not repay any debt after all.	Supports amending the Code to eliminate the markedly different treatment accorded to debtors and creditors by chapter 7 and 13.
NBRC- 0389	Burton F. Dahlberg	President, Kraus- Anderson, Inc.	Cover letter from Sen. Rod Grams enclosing this submission			The author attaches an article from the 10/21/96 "Shopping Center Today" that reports "Deal makers decry 'abuses' of retail Chapter 11 filings." The article states that shoppoing center developers and owners have been unfairly impacted by tenants who use chapter 11 filings as a "real estate strategy" and normal business practice, as opposed to a last resort.	The author requests the NBRC's "collective efforts to correct this inequitable situation" and prevent tenants from using chapter 11 as a real estate strategy.
NBRC- 0390	Mr. and Mrs. Fred Drake	Landlords/ Creditors	Cover letter from Rep. Dan Burton enclosing this submission			The authors are concerned about the Bankruptcy Code's treatment of landlords, specifically as it relates to utility payments when a tenant declares bankruptcy.	Code should be amended to require tenants to pay their utilities before they are eligible to file for bankruptcy.
NBRC- 0391	David C. Anderson	Attorney				A drawback to chpater 13 is that a chapter 13 filing still shows up on credit reports as filing for bankruptcy, even when a debtor pays off 100 percent of the debt. Moreover, the reference to the filing remains on a credit report for seven years or more--debtors should be rewarded for paying back debt by removing this reference from credit reports. Also, debtors would be able to pay off more debt if chapter 13 plans could run for six or seven years instead of the current limit of five years.	Credit reporting laws should be amended to remove references to filing chapter 13 as soon as possible, such as five years after the filing of the case. Also, the Bankrupcy Code should be amended to allow chapter 13 plans to run for six or seven years instead of the current limit of five years.
NBRC- 0392	Melford L. Nichols	Creditor	Cover letter from Rep. Tim Hutchinson enclosing this submission			The author states that the bankruptcy process is being abused by debtors who are trying to avoid their financial obligations. He had loaned $25,000 to a relative, and the debt was discharged when the relative filed for bankruptcy. The author feels that the federal government should not "protect" debtors in this fashion.	Bankruptcy Code shold be amended to limit the availability of discharges.
NBRC- 0393	Dean C. Waldt	Attorney		1121		Proposal to codify the new value exception to the absolute priority rule creates an inappropriate penalty against equity holders seeking to maintain their interest in the debtor. The proposal also represents poor econimic policy in that it encourages liquidation rather than reorganization and invites speculation and hostile acquisition within the context of a chapter 11 reorganization case. The automatic removal of exclusivity will feul lititgation and encourage speculation and hostile takeover attempts.	Opposes amendment to codify the new value exception to the absolute priority rule.
NBRC- 0395	Denise B. Muha	Exec. Dir., Nat'l. Leased Housing Assoc. ("NLHA")				Many tenants who are facing eviction proceedings are encouraged to file bankruptcy petitions to delay eviction. This process thwarts a landlord's ability to meet its obligations under federal program guidelines and prevents other qualified families from occupying the unit and receiving much needed federal rental assistance.	NLHA endorses the recommendaiton of the Nat'l.Multi Housing Council/Nat'l.Apartment Assoc. (attached) which proposes an amendment to the Bankruptcy Code that would specify that the possession of a residence by a tenant under a rental agreement shall not be deemed property of the esate.
NBRC- 0396	Heidi Heitkamp	Nat'l. Assoc. of Attorneys General ("NAAG"); Attorney General, North Dakota; Chair of the NAAG Bankruptcy and Taxation Working Group		362	105	NAAG strongly supports the positions expressed by the Department of Justice with respect to proposed changes to §§ 362 and 105. Collection of purely monetary judgments should be deferred to the normal bankruptcy process. However, on many occasions, the proper exercise of the state's police and regulatory powers means that it must act against items such as licenses or permits that may be property of the esate, or that it must seize assets in situations where goods have been manufactured in violation of the law.	Bankruptcy Code must be clarified to protect the legitimate exercise of state police and regulatory powers from imposition of the automatic stay.
NBRC- 0397	Richard W. Hudgins	Attorney	Cover letter from M. Caldwell Butler enclosing this submission	521(2), 704(3)		Despite the language of §§ 521(2) and 704(3), in reality "the Trustee has no authority to issue orders to a Debtor, or absent Court any procedure (sic), to ensure that the Debtor performs his intent [with respect to retention or surrender of consumer property]."	Code should be amended to provide the Trustee with actual power to ensure that debtors performs their stated intentions as specified in § 521(2)(B).
NBRC- 0398	Dick Kibbey	President/ CEO, Marion School Employees Federal Credit Union				Bankruptcy Code makes filing for bankruptcy too easy. The author states, "Today, bankruptcy is the neutralizer for poor judgment and poor money management skills." Often, bankruptcy judgments do not adequately factor in future income, consumer abuse of chapter 13 filings, serial filings, overzealous bankruptcy attorneys, and other bankruptcy system abuse.	Bankruptcy Code should be amended to making filing for bankruptcy more difficult and to require debtors to pay off as much debt as they can afford.
NBRC- 0399	Jean E. C. Laborde	Chapter 11 debtor				The author provides a copy of her testimony before the NBRC, of which she was only able to present a portion. She states that as a chapter 11 debtor, she has been the victim of "fraud and preceived corruption and the inherent injustices in the Fresno Bankruptcy Court which cost my family and I over $50,000,000.00." Specifically, she states that the chapter 11 trustee and his attorney have been involved with "conflict of interest and insider self-dealings by former corporations.	Author requests that the NBRC "help to get an investigation, certified audit or an audit by the General Accounting Office..." with regards to her experiences with the bankruptcy system.
NBRC- 0400	Andy Tela, Jr.	Chapter 7 debtor				Bankruptcy petition preparers provide an important and useful service in the preparation of bankruptcy petitions. Their services are cost-effective, accurate and efficient.	Bankruptcy petition preparers should be allowed to contiue providing their services to debtors.
NBRC- 0401	Julie Sawyer	Chapter 7 debtor				Bankruptcy petition preparers provide an important and useful service in the preparation of bankruptcy petitions. Their services are cost-effective, accurate and efficient.	Bankruptcy petition preparers should be allowed to contiue providing their services to debtors.
NBRC- 0402	Jeff Foust	Chapter 7 debtor				Bankruptcy petition preparers provide an important and useful service in the preparation of bankruptcy petitions. Their services are cost-effective, accurate and efficient.	Bankruptcy petition preparers should be allowed to contiue providing their services to debtors.
NBRC- 0403	Gary Newton	Banker (specific affiliation not provided)				Many debtors use bankruptcy just to rid themselves of unwanted credit card debt. Debtors should have to prove that they cannot pay their bills, and should not be allowed to keep luxury items purchased with the credit cards.	Code should be amended to require as part of the consumer bankruptcy process that all luxury, non-essential assets be sold without regard to value or equity, and all debt should be paid off with additional proceeds to be given to unsecured creditors.
NBRC- 0404	James J. Keightley	General Counsel, Pension Benefit Guaranty Corporation ("PBGC")		503 and 507	28 U.S.C. § 157(d)	Sections 503 and 507 are unclear, and need to be reconciled with the various provisions of the Bankruptcy Code, ERISA and the Internal Revenue Code. Also, matters involving substantial and material consideration of both bankruptcy and non-bankruptcy federal law, upon timly motion of a party, must be dealt with by the district court rather than the bankruptcy court under 28 U.S.C. § 157(d). PBGC appreciates being allowed to serve on creditors' committees. PBGC is concerned that the tentative recommendation of the Commission regarding claims classification could lead to abuse and necessitate litigation.. Creditors should not have their claims against third parties extinguished, especially with regard to co-obligors not themselves debtors in cases under Title 11.	Sections 503 and 507 should be clarified with respect to their interaction with ERISA and the Internal Revenue Code. Mandatory withdrawl should be retained, particularly in cases in which interpretation of the Bankruptcy Code, ERISA and the IRC are all involved. While examining the fiduciary duties of a debtor in possession ("DIP") that arise upon filing of a chapter 11 petition, the Commission should include those duties that the DIP may inherit under ERISA.
NBRC- 0405	Richard T. Webb	President & CEO, Atlantic Financial Federal Credit Union ("AFFCU")				AFFCU is experiencing a rise in the number and cost of bankruptcies with members who have not been deliquent, but to which they have lent money to assist in paying off other loans.	NBRC should consider this development when deliberating on changes to the Bankruptcy Code.
NBRC- 0405	Richard T. Webb	President & CEO, Atlantic Financial Federal Credit Union ("AFFCU")				Bankruptcy fraud is increasing, due primarily to the lack of stigma attached to bankruptcy. One area of particular concern is the "fresh money theory"--namely, cash advances taken within 20 to 30 days of filing for bankruptcy.	Time frame during which cash advances are considered "fresh" shold be expanded.
NBRC- 0406	"Bankruptcy Petition Preparer"	Anonymous Letter				Some bankruptcy judges and trustees are misusing § 110 to impose harsh penalties upon petition preparers and deny petition preparers the fees they earn for their services. The author has sucessfully defended himself against the § 110 motions, but is concerned about the effort and cost of defending these "unnecessary" motions. Fraud is illegal regardless of the directives in § 110..This section seems to be aimed at driving petitions preparers out of the business instead of protecting against fraud.	Section 110 should be eliminated, and the Code should be amended to protect legitimate petition preparers from unwarranted harrassment.
NBRC- 0407	Edward L. Montedonico	Attorney		707(b)		This issue of abusive chapter 7 filing, e.g. debtors who could afford to pay their debts through chapter 13 but are filing under chapter 7 instead, has already been adequtely addressed by § 707(b). No additional provisions are necessary are needed to deal with this concern.	No additional Code provisions are needed to address abusive chapter 7 filings. Title 11 does need to be fine tuned, but an overhaul of the system is not warranted.
NBRC- 0408	Richard Morgan	Creditor				The author is a creditor of a woman who assumed his mortgage and then declared bankruptcy under chapter 13 and failed to make scheduled court payments. When the author tried to foreclose, she filed again and is still not making payments. Bankruptcy laws are too lenient with debtors.	Bankruptcy Code should be amended to provide that debtors are not allowed to re-file for at least seven years after having received a release or discharge from the court.
NBRC- 0409	Mrs. William H. Behan	Debtor				The author was forced to declare bankruptcy when the court awarded her tenants $55,000 in rent overcharges and $26,000 in attorneys fees based on the author's violation of rent control provisions. Her home is now being put up for public auction as part of the bankruptcy process. She feels that peoples' homes should be protected from bankruptcy proceedings such as these.	Code should be amended to provide a homestead exemption in states where it is currently not available.
NBRC- 0410	Sandra M. Baner	Attorney				Chapters 7 and 13 are working well and serve the purposes for which the Bankruptcy Code is intended. The author's clients are not abusing the bankruptcy system, and "it is difficult to feel sympathy for large credit companies that are making record profits when I personally meet with hundreds of consumers who many times must choose between paying the credit card or feeding the children."	Chapters 7 and 13 should be preserved as they are drafted because they are working well. Creditors do not need to be provided with additional protections.