This legal uncertainty constitutes risk. The authors discuss a few recent cases and offer a sidebar of questions to ask involving the strength of a claim in the derivatives market. Author starts with a primer on derivatives, and continues with an analysis of the kinds of risk involved in trading them. The article concludes with summaries of several reports on how best to deal in derivatives, considering risk management. Lenders pounce on lien stripping, but options persist for debtors Two Supreme Court cases, Nobelman and Dewsnup, seemed to take the air out of lien stripping on mortgage debt.
Borrowers still see loan conversions as a viable tool.
Author discusses the major changes in the Bankruptcy Reform Act of 1994. This is the most comprehensive change in bankruptcy law in 16 years. Emphasis is on the fast track of Chapter 11, bankruptcy appellate panels, jury trials and the Bankruptcy Review Commission. The 1994 Bankruptcy Reform Act tried to correct some of the problems that earlier bankruptcy legislation had failed to answer regarding personal property leases. The author says it did in many ways, but still left some issues up in the air.