Multi-issue bankruptcy problems with crossed claims

In this paper, we introduce a novel model of multi-issue bankruptcy problem inspired from a real problem of abatement of emissions of different pollutants in which pollutants can have more than one effect on atmosphere. In our model, therefore, several perfectly divisible goods (estates) have to be allocated among certain set of agents (claimants) that have exactly one claim which is used in all estates simultaneously. In other words, unlike of the multi-issue bankruptcy problems already existent in the literature, this model study situations with multi-dimensional states, one for each issue and where each agent claims the same to the different issues in which participates. In this context, we present an allocation rule that generalizes the well-known constrained equal awards rule from a procedure derived from analyzing this rule for classical bankruptcy problems as the solution to a sucession of linear programming problems. Next, we carry out an study of its main properties, and we characterize it using the well-known property of consistency.

Temporary Measures on Bankruptcy: Alternatives to the Moratorium on Act 37/2004 in Resolving Indonesian Bankruptcy During the COVID-19 Pandemic

The high number of bankruptcies in Indonesia, which increased to 54% in the pandemic era, had negative impacts on the economic ecosystem in Indonesia. A regulation is needed that can reduce the number of bankruptcies, in which the moratorium of Act 37/2004 is a discourse that will be predicted as the main solution. The moratorium of Act 37/2004 with its weaknesses has been rejected by many parties, so this research will offer a more appropriate alternative solution in the form of setting temporary measures on bankruptcy. This study seeks to describe the urgency and prospects of the presence of temporary measures on bankruptcy in Indonesia and recommend the regulation and implementation of temporary measures on bankruptcy in Indonesia. This legal research is normative legal research with data obtained from library research analyzed descriptive-qualitatively. The results of the study indicate that the moratorium of Act 37/2004 does not provide fair benefits for debtors and creditors in resolving bankruptcy problems so that it will actually hinder investment in Indonesia. Temporary measures on bankruptcy is an alternative that fills the absence of law in Indonesia regarding provision to bankruptcy relaxation. These measures provide fair benefits for both parties while still being able to file for bankruptcy but with a certain threshold and stimulus. Seeing the success of temporary measures on bankruptcy in various countries in reducing the number of bankruptcies, Indonesia needs to immediately implement the same thing in the Peraturan Pemerintah Pengganti Undang-Undang (PERPU).

Termination of Dollateralized Obligations as an Illegal Action in Case of Bankruptcy: Problems of Criminal Law Assessment

There is a general rule according to which if the claims of some creditors on the debtor’s property are knowingly satisfied to the detriment of other creditors, it constitutes an illegal action in case of bankruptcy provided that such an action inflicted major damage. In its turn, the size of the inflicted damage coincides with the size of satisfied claims minus the share that would have been due to the creditors who satisfied their claims this way if the insolvency estate has been distributed according to the insolvency law. At the same time, the corresponding crime may be committed not only through the due performance of an obligation, but also through the termination of bail bonds on other grounds. When the authors analyze illegal actions in cases of bankruptcy committed through the provision of release property, they conclude that if the market value of the release property exceeds the size of terminated obligations by the sum equaling major damage, the actions should be classified as multiple offences under Parts 1, 2, Art. 195 of the Criminal Code of the Russian Federation. As for the order of determining the size of damage when satisfying claims secured by the debtor’s property, the authors pay attention to the privileged status of the pledge holder: a part of proceeds from the sale of pledged property must be used to satisfy their claims on the principal plus interest. Thus, for the corresponding part of the value of the object of pledge, no damage is inflicted on other creditors in connection with satisfying the claims of the pledgee. In some circumstances, the claims of the pledge holder are satisfied by a part of the proceeds from the sale of the object of pledge designated for the satisfaction of other claims, which cannot be overlooked when determining the size of the inflicted damage. The exceptions are the cases when, as a result of satisfying the claims of the pledgee, their claims on compensating damages and (or) paying financial sanctions were also satisfied. The satisfaction of the abovementioned claims in the size equaling major damage constitutes a crime under Part 2, Art. 195 of the Criminal Code of the Russian Federation. At the same time, if the difference between the size of pledge requirements terminated by the provision of release property, and the value of the transferred assets equals major damage, the actions must be classified as multiple offences under Parts 1, 2, Art. 195 of the Criminal Code of the Russian Federation.

Characterizing NTU-bankruptcy rules using bargaining axioms

This paper takes an axiomatic bargaining approach to bankruptcy problems with nontransferable utility, by using properties from bargaining theory in order to characterize bankruptcy rules. In particular, we derive new axiomatic characterizations of the proportional rule, the truncated proportional rule, and the constrained relative equal awards rule, using properties which concern changes in the estate or in the claims.

An Axiomatization of the Proportional Rule in Financial Networks

The most important rule to determine payments in real-life bankruptcy problems is the proportional rule. Many such bankruptcy problems are characterized by network aspects, and the values of the agents’ assets are endogenous as they depend on the extent to which claims on other agents can be collected. These network aspects make an axiomatic analysis challenging. This paper is the first to provide an axiomatization of the proportional rule in financial networks. Our main axiom is invariance to mitosis. The other axioms are claims boundedness, limited liability, priority of creditors, continuity, and impartiality. This paper was accepted by Manel Baucells, decision analysis.

Fairness Vs. Economic Efficiency: Lessons from an Interdisciplinary Analysis of Talmudic Bankruptcy Law

Bankruptcy problems are commonly associated with economic disasters, but can also emerge due to extraordinary economic performance The choice of a sharing rule has a significant potential effect on the economy’s general equilibrium. The economic literature hitherto neglected the search for an economically optimal bankruptcy solution and concentrated mainly on normative axiomatizations of sharing rules. However, its findings did not attract much attention of legal scholars. The purpose of this article is to create a symposium between the economic and legal literature on bankruptcy based on our interdisciplinary analysis of a fascinating polemic conducted by Jewish Law scholars over the course of fifteenth centuries about the appropriate bankruptcy solution.