Publication Date

1995

Journal

University of Illinois Law Review

Abstract

In this article, Professor David Gray Carlson analyzes the intersection of voidable preference law under 11 U.S.C. § 547 and security interests under Article 9 of the Uniform Commercial Code. The essay purports to articulate the metaphysical assumptions present in this intersection, no matter how rarified and peculiar, because, in this area of law, even the slightest and most fantastic metaphysical presupposition can change results and shift wealth between debtors and creditors. Given the current dearth of unsecured dividends in bankruptcy proceedings, everything turns on whether security interests survive the critique of voidable preference law. In his treatment, Professor Carlson suggests a new methodology for approaching the validity of security interests in bankruptcy. According to this methodology, the timing of the security interest must be set. After this sometimes-difficult task is met, the second step is to analyze the bankruptcy trustee's prima facie defense under § 547(b). Finally, defenses must be assessed under § 547(c). Along each step of the way, the author identifies the metaphysical paradoxes that might ensnare the unobservant secured creditor.

Volume

1995

Issue

2

First Page

211

Last Page

362

Publisher

University of Illinois College of Law

Disciplines

Bankruptcy Law | Commercial Law | Law

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