Document Type

Article

Publication Date

1996

Abstract

This Article examines the conflict between state law which permits the creation of security interests in a debtor's after-acquired property--or "floating liens"--and federal bankruptcy law's potential cutoff of many of those security interests. This conflict arises in virtually every bankruptcy case. However, because of ambiguous statutory language and a failure of the jurisprudence conceptual center. This Article argues that using a model of a debtor in liquidation to analyze the cutoff of floating liens would balance the underlying policy considerations and make judicial outcomes more predictable.

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