Turning and Turning in the Widening Gyre: The Problem of Potential Conflicts of Interest in Bankruptcy

Abstract

This article is the first in a series of articles discussing the problem of conflicts of interest in bankruptcy cases. It argues that the traditional means for discovering and handling conflicts of interest - based on state-law ethics rules - fundamentally misconceives the problem in a bankruptcy context. State law ethics rules presume that the parties are always in static positions; in bankruptcy law, alliances shift all the time. The article proposes a possible method of handling potential conlicts of interest in bankruptcy cases.

Keywords: conflicts of interest, ethics, professional responsibility, bankruptcy

JEL Classification: K00, K40