Formalizing Chapter 9's Experts

49 Pages Posted: 3 Oct 2016 Last revised: 14 Dec 2018

See all articles by Laura Coordes

Laura Coordes

Arizona State University - Sandra Day O'Connor College of Law

Date Written: August 11, 2017

Abstract

Chapter 9 of the U.S. Bankruptcy Code has many shortcomings. One of the most persistent, yet understudied, problems judges face in chapter 9 is also a problem that exists in other areas of bankruptcy law: the sheer difficulty of applying generalized plan confirmation standards to wildly different, highly specialized entities. In practice, judges have turned to experts—individuals well-versed in municipal finance, mediation, and the particular debtor community—to help them overcome this problem in chapter 9. These experts often perform critical roles in a municipal bankruptcy case, including conducting mediations, investigating the municipality’s finances, and even helping to craft the municipality’s plan of debt adjustment.

Despite the important roles experts play in bankruptcy, in chapter 9, their appointment and selection process is given little attention, and the scope of their role is often ill-defined. This Article highlights the concerns that arise due to the lack of procedures surrounding experts in municipal bankruptcy. After exploring the benefits and pitfalls associated with using experts in chapter 9 and elsewhere, this Article provides detailed guidance for designing formal procedures for selecting, appointing, and using experts in chapter 9.

Keywords: Municipal Bankruptcy, Chapter 9, Fiscal Distress

Suggested Citation

Coordes, Laura, Formalizing Chapter 9's Experts (August 11, 2017). 116 Mich. L. Rev. 1249 (2018), Available at SSRN: https://ssrn.com/abstract=2846512 or http://dx.doi.org/10.2139/ssrn.2846512

Laura Coordes (Contact Author)

Arizona State University - Sandra Day O'Connor College of Law ( email )

Box 877906
100 S. McAllister Ave.
Tempe, AZ 85287-7906
United States

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