Ethics, Bankruptcy and Greed: The Unintended Consequences for Landlords of the 2005 Bankruptcy Amendments

24 Pages Posted: 8 Dec 2009 Last revised: 5 Dec 2012

See all articles by Harlan D. Platt

Harlan D. Platt

Northeastern University - Finance and Insurance Area

Christopher R. Mirick

affiliation not provided to SSRN

Marjorie Platt

Northeastern University - Accounting Group

Date Written: June 21, 2011

Abstract

This article is about ethics, or more correctly questionable ethics. It is also about greed. When a commercial party’s consideration for its stakeholders is distorted by an opportunity for short-term gain, it creates a self-centric view of the world. This myopia creates a blurred vision of others – their needs and roles – and consequently may cause parties to make decisions that ultimately prove to be disastrous not just to those immediately affected by the decision, but to the industry as well.

This paper concerns certain provisions of the 2005 revisions to the United States Bankruptcy Code referred to as The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA). Specifically, this paper considers how commercial property landlords used BAPCPA to obtain certain changes to the Bankruptcy Code that under a given set of (historically prevailing) circumstances would have had the effect of transferring value from other creditors to the landlords, but under other (now prevailing) circumstances actually have had disastrous consequences – for the landlords, and for other parties. We submit that the failures to consider how these changes would affect other parties, and the apparent failure to recognize that historical circumstances could change, represent an ethical failure by commercial landlords.

Keywords: Bankruptcy,liquidation, ethics, landlords, BAPCPA, bankruptcy law

JEL Classification: G33, K10, K40, I21

Suggested Citation

Platt, Harlan D. and Mirick, Christopher R. and Platt, Marjorie, Ethics, Bankruptcy and Greed: The Unintended Consequences for Landlords of the 2005 Bankruptcy Amendments (June 21, 2011). Available at SSRN: https://ssrn.com/abstract=1520163 or http://dx.doi.org/10.2139/ssrn.1520163

Harlan D. Platt (Contact Author)

Northeastern University - Finance and Insurance Area ( email )

Boston, MA 02115
United States
617-373-4740 (Phone)
617-373-8798 (Fax)

Christopher R. Mirick

affiliation not provided to SSRN ( email )

Marjorie Platt

Northeastern University - Accounting Group ( email )

360 Huntington Ave.
Boston, MA 02115
United States

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