Professional Fees and Other Direct Costs in Chapter 7 Business Liquidations

75 Washington University Law Quarterly 1207

28 Pages Posted: 15 Aug 2013

See all articles by Robert M. Lawless

Robert M. Lawless

University of Illinois College of Law

Stephen P. Ferris

University of Missouri at Columbia - Department of Finance

Date Written: 1997

Abstract

Using an empirical analysis from Chapter 7 cases in five judicial districts, this article estimates the direct costs in typical small business Chapter 7s. The article finds that direct costs are lower than commonly portrayed, constituting a mean of 6.1% of total assets of 13.5% of total distributions. Costs did vary substantially across districts. Delay and case complexity were the largest determinant of bankruptcy costs. Most all of the cases involved only a negligible distribution for unsecured creditors.

JEL Classification: K00

Suggested Citation

Lawless, Robert M. and Ferris, Stephen P., Professional Fees and Other Direct Costs in Chapter 7 Business Liquidations (1997). 75 Washington University Law Quarterly 1207. Available at SSRN: https://ssrn.com/abstract=2309625

Robert M. Lawless (Contact Author)

University of Illinois College of Law ( email )

504 E. Pennsylvania Avenue
Champaign, IL 61820
United States

Stephen P. Ferris

University of Missouri at Columbia - Department of Finance ( email )

214 Middlebush Hall
Columbia, MO 65211
United States
573-882-6272 (Phone)
573-884-6296 (Fax)

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