Institutional Capture: Why We're Overdue for a New Bankruptcy Act

53 Pages Posted: 18 Aug 2023

Date Written: May 15, 2023

Abstract

The paper, in short, explores how the structure of the bankruptcy system in the United States serves large corporations. This underlying purpose is shielded in the ‘debtor-friendly’ model, as the system is theoretically designed to help debtor businesses get back on their feet and serve their creditors and consumers. However, rather than actually being a debtor-friendly system, the Bankruptcy Code is ‘large corporation friendly’, helping corporate debtors and creditors alike before providing any protections for ‘the little guy.’ The paper then proposes a “New Bankruptcy Act,” with several reforms designed to return to the original debtor-friendly model of the Code, while providing additional protections against abuse and capture.

Keywords: justice, bankruptcy, business

Suggested Citation

Graham, Jessica R., Institutional Capture: Why We're Overdue for a New Bankruptcy Act (May 15, 2023). New York University Journal of Law and Business, Vol. 19, No. 2, 2023, Available at SSRN: https://ssrn.com/abstract=4544050

Jessica R. Graham (Contact Author)

Harvard Law School ( email )

United States

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