Section 214 of this bill addresses cases that turn upon issues involving guarantees and who may be considered an ``insider'' under the Bankruptcy Code. It is my understanding that the Deprizio decision, which changed the understanding of bankruptcy law by expanding the definition of ``insider'', has been applied to lenders retroactively, even though the challenged transactions were made before Deprizio was decided. In fact, it is my understanding that the interpretation of the Bankruptcy Code by those courts which follow Deprizio permits a Trustee in Bankruptcy to recover from a lender who is innocent of wrongdoing and deserving of protection, merely because he sought a guarantee for the debt.
Editor's note · Context
Discussing implications of the Bankruptcy Code and the Deprizio decision during a legislative session.
Share
More from Sen. Bob Graham
Section 602 of this bill states that the change in the Bankruptcy Code shall only apply to cases which are filed after the date of enactment, thereby eliminating the Deprizio issue from future cases. Could this bill also eliminate the…
I agree with Mr. Thompson. There is no issue, Mr. President, which raises the issue of intergenerational conflict more sharply than the question of Social Security. Social Security was enacted in the depths of the Depression with an…
far too many individuals do not contemplate the financial, health, and social implications and consequences of their retirement years. The majority of Americans do not plan comprehensively for their retirement; they do not consider the…
Second, Mr. President, we are concerned about the deficit because of the uncertainty as to the future caused by the deficit and therefore a tendency to focus on short-term rather than long-term issues. One of the characteristics of the…





