In order to clarify the objectives of bankruptcy, to reveal the true essence of bankruptcy procedure and the origin of legal terms, it is necessary to ascertain the nature of this institute of law, as well as the reasons for its creation and development. This article provides historic analysis of the development of the institute of bankruptcy procedure. For this purpose, a historic comparative research is undertaken in the article, in order to find certain parallels of (...) class='Hi'>bankruptcy procedure under Roman law and the modern bankruptcy procedure. Roman law has been chosen as the most phenomenal ancient law for the purposes of undertaking a historic analysis of the development of bankruptcy procedure. In the authors’ opinion, it it the best example that reveals the origin of bankruptcy procedure, and the reasons for its formation. Analysis of certain private law institutes of Roman law enables the authors to conclude that the main features (principles) of the bankruptcy procedure formed precisely under Roman law: replacement of personal liability by pecuniary; public auction as a form of realization of debtor’s property; transition from selling of debtor’s property as a whole to disposal of property in divided property units; creation of subject, who administers auctions of debtor’s property under oath not to act in selfish purposes; setting of a term of 30 days, during which a debtor has to cover the debts (claims’ dispute resolution); establishment of the institute of informing creditors about initiated procedures of debt retrieval and encouragement to join these procedures; establishment of the ban to recover debts from household items; laying of the foundations of the institute of peace agreement between the debtor and his creditors; establishment of actio Pauliana - a remedy for the protection of creditors rights. The mentioned rules in one way or another eventually have been transferred to legal acts on legal relations in case of bankruptcy of many foreign countries. (shrink)

The number of credit delinquents in Korea had been growing steadily since 1997 and had reached 3,700,000 by the end of 2003, which was about 8.4% of the population. The government initiated several support programs, but the number of credit delinquents has decreased very slowly. In order to allow for successful recovery of credit delinquents, it is imperative to reduce debts in a more comprehensive manner, to clear the impediments for easy use of personal bankruptcy mechanisms, and to provide (...) incentives to encourage debtors to make progress on their repayment plans. While there has been much change in terms of learning to live with bankruptcy as an inevitable part of a market economy, there is still much to be done. The reality of "moral hazard" in bankruptcy discharge should be uncovered. Legal restraints discriminating against bankrupts must be removed. The repayment period of individual rehabilitation and individual workouts must be shortened to three years. Personal guarantors for debtors in rehabilitation proceedings should be protected as much as the debtors are during the repayment period in rehabilitation proceedings. Debtors need to be able to keep their mortgaged residences during the proceedings. The history of insolvency has shown that society can benefit as much as or more than debtors themselves from the discharge of unpaid debts because with a fresh start the debtor has an incentive to work hard. The starting point to personal bankruptcy law reform is this belief. (shrink)

The safeguarding of credit represents one of the most important economic and juridical challenges for every complex society. Just by reading the news we can realize how current this topic is for us. By thinking back over the history of ideas and the social, economic, and political reasons that got Law makers to legislate on this subject, we can better understand what’s happening today and in which direction our societies are going. An analysis of the Italian juridical system’s development on (...) bankruptcy proceedings, starting from the attitude of ancient Roman law on over-indebtedness, can effectively shine light on the current regulation, reformed in 2006. This new bankruptcy law transforms the previous public nature of bankruptcy proceedings into a prevailingly private management of enterprises’ financial problems, completely changing the course of credit policy. The “Italian way” is just one result of an international trend, the guiding lines of which can be seen throughout the whole EU and also in the regulation of the USA. This historical-comparative perspective, in all its positive and negative potentiality, is an important paradigm. The final hope is that historians can perhaps give their contribution to more conscious reflections on important topics like this one, offering to other scholars the possibility to have a wider view on this juridical phenomenon. (shrink)

Adopting a comparative UK/US approach, this article argues for the need to rethink corporate bankruptcy theory in the light of developments in the finance market. It argues that these developments have produced an effective mechanism, in large cases, for selecting between companies which will be worth more if they continue to trade and companies which ought to be allowed to fail, so that corporate bankruptcy law need no longer concern itself with steering creditor choice away from a sale (...) of the business and assets and towards a restructuring. Moreover, it suggests that whilst the automatic stay remains a central tenet of corporate bankruptcy law where the market decides that the business and assets should be sold, in cases where the market sees more value if a company continues to trade, corporate bankruptcy law may operate very well without a stay as a resolution procedure for deadlocked negotiations. The article identifies that in many large restructuring cases the only liabilities that are implicated are financial liabilities, and queries the extent to which the distributional concerns of the progressive movement, and US federal bankruptcy law, apply where losses are shared amongst sophisticated financial institutions. It ends with an explanation of why the analysis is limited to large cases, an indication of areas for further research and a note of caution for the future. (shrink)

The fundamental ethical problem in bankruptcy is that insolvents have promised to pay their debts but can not keep their promise. The Ethics of Bankruptcy examines the morality of bankruptcy. The author compares and contrasts the Humean doctrine of promises as useful conventions with the Kantian view of autonomous agency constituting promissory obligations; he explores ethical concerns raised by forgiveness, utilitarianism and distributive justice and the moral aspects of insolvents' contractual, fiduciary, tortious and criminal liability. Finally, the (...) author assesses recent bankruptcy law reforms. Bankruptcies severly hurt creditors and society. For the insolvents and their families the experience is painful and stigmatising, yet philosophers have paid little attention to the moral aspects of this violent social phenomenon. The Ethics of Bankruptcy is the first comprehensive study that employs the tools of ethics to examine the controversies surrounding insolvency, which makes valuable and sometimes controversial reading in a decade recovering from the Recession. (shrink)

The fundamental ethical problem in bankruptcy is that insolvents have promised to pay their debts but can not keep their promise. _The Ethics of Bankruptcy_ examines the morality of bankruptcy. The author compares and contrasts the Humean doctrine of promises as useful conventions with the Kantian view of autonomous agency constituting promissory obligations; he explores ethical concerns raised by forgiveness, utilitarianism and distributive justice and the moral aspects of insolvents' contractual, fiduciary, tortious and criminal liability. Finally, the author (...) assesses recent bankruptcy law reforms. Bankruptcies severly hurt creditors and society. For the insolvents and their families the experience is painful and stigmatising, yet philosophers have paid little attention to the moral aspects of this violent social phenomenon. _The Ethics of Bankruptcy_ is the first comprehensive study that employs the tools of ethics to examine the controversies surrounding insolvency, which makes valuable and sometimes controversial reading in a decade recovering from the Recession. (shrink)

This Article argues that when credit suppliers market and advertise their credit products, they utilize and enhance consumers’ cognitive biases, particularly their optimism bias and illusion of control. We apply the concept of manipulation to this practice. The biased and manipulated debtors attribute unrealistically low probability to negative life events, such as job loss, illness, accident or divorce, and high probability to positive life events. As a result of the manipulation, the biased debtors are triggered to borrow more than they (...) would have borrowed otherwise. This additional borrowing may contribute to the default of these debtors and to their eventual bankruptcy. Empirical studies of the causes of bankruptcy show that before their default, bankrupts have often experienced negative life events that decrease income, increase expenses, or both. The bias and its manipulation justify legal intervention. The Article discusses various justifications for legal intervention and offers tentative and partial prescriptions for intervention. It analyzes the comparative advantages and shortcomings of ex ante intervention, in the form of regulation of credit marketing practices and credit contracts, of tax and insurance, and ex post intervention, at the bankruptcy stage. Its main contribution is in bringing together bodies of literature on cognitive biases, consumer decision making, lifecycle, social influence, advertising and marketing, behavioral law and economics, economic analysis of bankruptcy and socio-legal studies of bankruptcy. By combining these bodies of literature, the Article provides a new perspective on bankruptcy and credit and offers a promising framework for future work. (shrink)

In this paper, Professor Wiggins explores the relationship between conservative economic theories and major bankruptcy reforms recently enacted by the United States Congress. First, she describes three key components of conservative economic theory as advanced by the Bush Administration and conservative scholars. These include: a strong preference for private ordering over public ordering, the promotion of private property as a means to expand personal freedom and liberty, and the encouragement of individual risk internalization. Next, she describes two theoretical components (...) of the new bankruptcy reforms. These include: a preference for creditor collection over debt relief and the promotion of individual risk internalization. Then Professor Wiggins examines two questions: First, is there meaningful theoretical symmetry between conservative economics and the new bankruptcy law? Second, is there significant operational symmetry between the two? The paper suggests theoretical convergence for two reasons: First, both conservative economics and the new bankruptcy law aim to promote private bargains over administratively adjusted ones. Second, both seek to force individuals to absorb more of the risks of financial decision-making. The paper suggests, however, that at the operational level there exists significant divergence between the aims of conservative economics and the predicted consequences of the new law. Professor Wiggins concludes, among other things, that economic conservatives should pay more rigorous attention to personal bankruptcy policy because operational asymmetry between their theories and the new legislation could blunt their ambitious economic agenda for American consumers. (shrink)

This Article discusses a triangle of forces that affect the activity of small-medium enterprises. These forces are: limited liability, shareholder guarantees, and bankruptcy. Limited liability encourages entrepreneurship by reducing the personal risks shareholders are exposed to as a result of business failure. However, the limited liability shield creates the potential moral hazard of overinvestment. That is, the entrepreneur may involve the corporation in overly risky projects. To combat this risk, the lending practice requires entrepreneurs to sign a personal guarantee (...) for corporate debt. The guarantee serves as a bonding device that forces the entrepreneur to internalize the costs of the corporate activity. This Article first argues that while personal guarantees can serve this economic goal, the lending industry demands them excessively and they are overused. The overuse of guarantees unnecessarily subjects good corporate borrowers as well as bad ones to this practice and causes underinvestment. The third force of the triangle, a discharge of the shareholder’s debts in bankruptcy, may balance this inefficiency. It potentially softens the effect of the guarantee and thus requires the lender to further gather borrowerspecific information at the lending stage. Unfortunately, personal bankruptcy is underused by individual debtors mainly because of the stigma it implies. To rebalance the triangle, this Article proposes to encourage the shareholder’s partial relief of the guarantee through an amicable procedure. I call this procedure Velvet Bankruptcy. Velvet Bankruptcy would first procedurally consolidate the private collection from the shareholder-guarantor with the pending corporate bankruptcy case, by authorizing the court to extend the automatic stay to protect the shareholder-guarantor. To the extent the court is convinced that the collection would render the shareholder insolvent, it could reduce the guarantor’s liability. This would effectively constitute discharge without officially declaring the shareholder bankrupt. (shrink)

Debate about legal and policy reform has been haunted by a pernicious confusion about human nature, the idea that it is a set of rigid dispositions, today generally conceived as genetic, that is manifested the same way in all circumstances. Opponents of egalitarian alternatives argue that we cannot depart far from the status quo because human nature stands in the way. Advocates of such reforms too often deny the existence of human nature because, sharing this conception, they think it would (...) prevent changes they deem desirable. Both views rest on deep errors about what it is to have a nature and how genetics works. Human nature, like the nature of anything else, is a set of potentials to behave certain ways in given environments, not a nonsocial genetic something that inevitably produces the same result in any environment. To say that existing inequalities, are due to our genes, inalterable because heritable, ignores that genetic propensities may be differently manifested in different environments. Heritability has meaning only relative to an environment and a population and implies nothing about inevitability. A better sort of inegalitarian argument is that a proposed reform, given our nature, would be too costly even if possible. However, this sort of argument is too rarely supported by evidence and generally ignores the costs of existing inequalities. But egalitarians err in supposing that, if behavior is unconstrained by biology, the status quo is easily alterable. The environment may be extremely hard to change. Legal and policy debate should adopt a correct understanding of human nature as a set of propensities and ask of any proposed reform agreed to be otherwise desirable what and how alterable are its causes, genetic, environmental, or more accurately both. (shrink)

Historically, individuals who file for bankruptcy protection have been viewed harshly by society. The negative perception of bankrupts was manifested in the punitive measures employed against bankruptcy petitioners, in the degrading public rituals directed at them, and in the contemptuous discourse used by officials to refer to the bankrupts. This traditional negative image of bankrupts was shared in colonial America, and vigorously continued throughout the Victorian era and into the 20th century. By the 1960s, a number of critics (...) began to voice their concerns about the dramatic rise in consumer bankruptcy filings in the United States. The critics have mostly attributed the increase in filings to an alleged decline both in morals and in the shame associated with bankruptcy. Charges of the fading stigma of bankruptcy have recently intensified. A number of recent studies have attempted to corroborate assertions of the declining stigma of bankruptcy through the use of indirect variables as proxies. These attempts to measure bankruptcy stigma have been roundly criticized. The disapproval centers mainly on the studies’ failure to directly measure changes in public perception of bankruptcy. This study attempts to measure the evolution of stigma in bankruptcy by addressing the methodological concerns attributed to previous empirical studies on this subject. Rather than measuring bankruptcy stigma through the examination of indirect bankruptcy stigma proxies or through the questioning of former petitioners, this study measures evolving public perceptions about bankruptcy by examining the expressed sentiments of the general public. To ascertain whether the negative image of bankrupts has eroded in the United States over the past century and a half, 171 newspaper articles published between 1864 and 2002 about personal bankruptcy were examined for content. Examination of the content of personal bankruptcy related newspaper articles provides valuable information about the evolution of public perceptions of bankrupts during that period. This study detected a noticeable shift, beginning in the 1960s, in public attitudes towards individuals filing for personal bankruptcy. However, it did not find that the changing public perception necessarily prompted an increase in the bankruptcy filings. (shrink)

The text offers a comprehensive introduction to business law and the Jordanian legal system. The textbook provides for key concepts and terms, contract basics, corporate structures, legal aspects of buying and selling, common pitfalls, international business issues and more. The text is comprehensive, in that there are chapters that cover what one would expect a business law text to cover, including intellectual property, real property, insurance, and bankruptcy.

The law sometimes permits what ordinary morality, or widely-shared notions of right and wrong, reproaches. Rights to Do Grave Wrong explores the relationship between law and common morality to clarify law's reliance on society's broad presumption that people will exercise their rights responsibly. More concretely, he argues that certain legal rights rest on tacit sociological assumptions as to who will exercise them, under what circumstances, and how frequently. Further, he argues that we depend on stigma and shame to reduce and (...) circumscribe the law's use. Some examples: though reneging on a debt is considered wrong, the law allows you to declare personal bankruptcy; international law allows museums to retain some masterworks looted from their rightful owners; in many countries abortion is permitted as a means of birth control. Using these examples and more, Osiel presents a "social scientific" analysis of law's interaction with social mores and the extent to which they limit our exercising rights to do wrong. The paradox he intends to elucidate is when and why it is appropriate for societies to champion de jure entitlements even as they successfully limit their de facto usage. (shrink)

The project of the comprehensive reform of Japanese insolvency law started in October 1996. After many enactments and amendments, there are now two types of judicial proceedings for personal insolvencies in Japanese insolvency law. The first category is straight bankruptcy proceedings in which the debtor can be discharged; the other is special Civil Rehabilitation proceedings for individual debtors. In this Article, I will first give a brief overview of the special Civil Rehabilitation proceedings for individual debtors, including a short (...) description of two types of proceedings, and legislative issues. Then I will give a brief overview of major amendments of the Bankruptcy Law concerning individual bankruptcies, including amendments relating to the scope of exemption and discharge proceedings. (shrink)

The purpose of the symposium is to address global and domestic insolvency law issues.

This illuminating Research Handbook analyses the role that emotions play and ought to play in legal reasoning and practice, rejecting the simplistic distinction between reason and emotion. International expert contributors take multidisciplinary approaches, drawing on neuroscience, philosophy, literary theory, psychology, history, and sociology to examine the role of a wide range of emotions across a variety of legal contexts. Chapters consider how the rich tapestry of human emotion impacts legal actors, influences legal doctrine, and shapes the dynamics of legal institutions. (...) Moving beyond legal contexts traditionally considered rife with emotion such as the criminal law and jury trials, the Handbook explores how emotion relates to contracts, property, bankruptcy, international law, and truth and reconciliation commissions. It also reflects on the importance of research methodologies, theories, and techniques for assessing the role of emotion in the legal arena. Surveying the depth and complexity of law and emotion across a panoply of legal actions, institutional contexts, and legal doctrines, this Research Handbook will be critical reading for academics and students of legal theory and legal philosophy. Its detailed examination of emotions in the practice of private, public, international, and criminal law will also be beneficial for lawyers, judges, and policymakers. (shrink)

This Article explores the relationship between consumer credit markets and bankruptcy policy. In general, I argue that the causative relationships running between borrowing and bankruptcy compel a new strategy for policing the conduct of lenders and borrowers in modern consumer credit markets. The strategy must be sensitive to the role of the credit card in lending markets and must recognize that both issuers and cardholders are well placed to respond to the increased levels of spending and indebtedness. In (...) the latter parts of the Article, I recommend mandatory minimum payment requirements, a tax on distressed credit card debt, and the subordination of payments to credit card lenders in bankruptcy. I also argue that many aspects of the American bankruptcy system, as recently reformed, are overly protective of credit card issuers. (shrink)

With cach successive generation of management, managers have been faced with different goals dictated by that current society''s needs and mores. For example, in the early 1900''s, industrial growth was essential to society''s needs; at the same time, such growth would not be hampered by social costs that were perceived as unimportant. Those social costs viewed as unimportant have not been properly factored into the cost of goods produced. Therefore, the products sold were underpriced, failing to reflect their true social (...) costs. Additionally, this miscalculation or misappropriation of such costs caused a misallocation of resources, such as the manufacturing of asbestos without regard to future health costs. Finally, the payment for the miscalculation of these social costs is due: present day management is now forced to provide a viable solution for payment of debts incurred by previous management. The most notable examples of such misappropriation are provided in the Manville, A. H. Robins and Continental cases. Unfortunately, the choice is often limited to a Chapter 11 bankruptcy.This article views the solution of Chapter 11 bankruptcy from three perspectives: legal, managerial, and moral. The legal review consists of the law and the current jurisprudence. Particularly emphasized are cases dealing with the discharge of executory contracts, tort claims and debts both secured and unsecured. Additionally, an examination of implementing a Chapter 11 bankruptcy plan from the viewpoint of current management is made. Closely associated with both the legal and managerial aspects of this issue is the moral facet of using bankruptcy as a management tool. The broad question is: how prevalent and how reasonable is it for management to declare Chapter 11 bankruptcy to manipulate the corporation''s creditors, employees, and stockholders to achieve management''s desired end. (shrink)

The BankXX system models the process of perusing and gathering information for argument as a heuristic best-first search for relevant cases, theories, and other domain-specific information. As BankXX searches its heterogeneous and highly interconnected network of domain knowledge, information is incrementally analyzed and amalgamated into a dozen desirable ingredients for argument (called argument pieces), such as citations to cases, applications of legal theories, and references to prototypical factual scenarios. At the conclusion of the search, BankXX outputs the set of argument (...) pieces filled with harvested material relevant to the input problem situation.This research explores the appropriateness of the search paradigm as a framework for harvesting and mining information needed to make legal arguments. In this article, we describe how legal research fits the heuristic search framework and detail how this model is used in BankXX. We describe the BankXX program with emphasis on its representation of legal knowledge and legal argument. We describe the heuristic search mechanism and evaluation functions that drive the program. We give an extended example of the processing of BankXX on the facts of an actual legal case in BankXX's application domain — the good faith question of Chapter 13 personal bankruptcy law. We discuss closely related research on legal knowledge representation and retrieval and the use of search for case retrieval or tasks related to argument creation. Finally we review what we believe are the contributions of this research to the understanding of the diverse disciplines it addresses. (shrink)

Israeli enforcement law uses both direct and indirect enforcement — the former via attachment of assets, and the latter via imprisonment of the debtor. The use of indirect enforcement via imprisonment is problematic, as it violates the basic rights of the debtor. I will argue that in response to this problem, the law created a framework for the "debtor of limited means." I will demonstrate that not only does this create an improper definition of the task of the Chief Enforcement (...) Officer, but that it is also an inefficient way of dealing with an insolvent debtor. I will propose that the system differentiate between debtors who cannot pay their debts and those who do not want to pay their debts. I believe that encouraging the insolvent debtor to file for of bankruptcy will avoid the problem of imprisonment and enable the Chief Enforcement Officer to return to his natural role as judge of enforcement. Additionally, I suggest creating a separate track of "consumer enforcement," which would avoid the whole system of installments, imprisonment, and debtors of limited means, at least regarding consumer credit. (shrink)

American bankruptcy law has offered a "fresh start" in every state for over one hundred years. As a result, econometric studies of consumer bankruptcy often focus on one of the few aspects of the law that has varied significantly across time and across states: exemptions. Professors Gropp, Scholz and White published the first article to test the effect of exemptions on credit markets. Consistent with theory, they found that residents of states with larger exemptions pay higher interest rates (...) than those in states with lower exemptions and face an increased probability that they will be denied credit. These effects were most pronounced for poor households. This result is surprising because exemptions only allow a household to keep what it has. The difference between a $100,000 exemption and an exemption with no dollar limit should not matter if the household has little or no assets to exempt. This essay examines alternative explanations for why exemptions appear to have a disproportionate impact on the poor. Unfortunately, however, none of these alternative explanations proves entirely satisfactory. (shrink)

This book serves as a compact introduction to the economic analysis of law and organization. At the same time it covers a broad spectrum of issues. It is aimed at undergraduate economics students who are interested in law and organization, law students who want to know the economic basis for the law, and students in business and public policy schools who want to understand the economic approach to law and organization. The book covers such diverse topics as bankruptcy rules, (...) corporate law, sports rules, the organization of Congress, federalism, intellectual property, crime, accident law, and insurance. Unlike other texts on the economic analysis of law, this text is not organized by legal categories but by economic theory. The purpose of the book is to develop economic intuition and theory to a sufficient degree so that one can apply the ideas to a variety of areas in law and organization. (shrink)

In this paper, I criticize an influential understanding of naturalization according to which work on traditional problems in the philosophy of law should be replaced with sociological or psychological explanations of how judges decide cases. W.V. Quine famously proposed the “naturalization of epistemology.” Quine argued that we should replace certain traditional philosophical inquiries into the justification of our beliefs with empirical psychological inquiry into how we actually form beliefs. In a prominent series of papers and a forthcoming book, Brian Leiter (...) has raised the intriguing idea that Quine’s naturalization of epistemology is a useful model for philosophy of law. I examine Quine’s naturalization of epistemology and Leiter’s suggested parallel. I argue that the parallel does not hold up. I show that, granting Leiter’s substantive assumption that the law is indeterminate, there is no philosophical confusion or overreaching in the legal case that is parallel to the philosophical overreaching of foundationalism in epistemology. Moreover, if we take seriously Leiter’s analogy between, on the one hand, the justification of belief in scientific theories and, on the other, the justification of decisions in legal cases, the result is almost the opposite of what Leiter suggests. The closest parallel in the legal case to Quine’s position would be the rejection of the philosophical positions that lead to the indeterminacy thesis. Finally, the conclusion that law is indeterminate could not establish the bankruptcy of philosophical investigation into the relation between the grounds of law and the content of the law. After all, the argument for that conclusion depends on a philosophical account of the relation between the grounds of law and the content of law. The argument therefore presupposes that that relation is an appropriate subject for philosophical inquiry. (shrink)

This paper critically reviews the judgment of the United States Court of Appeals for the Ninth Circuit In re: Jayson Reynoso: Frankfort Digital Services et al., v. Sara L. Kistler, United States Trustee et al. (2007) 447 F.3d 1117. The appellants, who were non-lawyers, were indicted with unauthorised practice of law for offering bankruptcy petition services via online legal software or expert systems in law configured for filing bankruptcy petition forms. The United States Court of Appeals for the (...) Ninth Circuit found inter alia that appellants were bankruptcy petition preparers, and not being lawyers, had exceeded their clerical remit by offering legal advice and legal services in contravention of California law regulating legal practice and 11 U.S.C. Sect. 110 of the Bankruptcy Code (2002). While examining the legal ramifications of the use of legal software by non-lawyers in the preparation of legal documents, the paper critically reviews the factual circumstances of the Reynoso decision in the context of juridical and statutory constructs of unauthorised practice of law in the United States. The paper poses the question whether Reynoso should be viewed as a one-off decision bound by its peculiar facts, or good law for the broad proposition that non-lawyers cannot use legal software in legal documents preparation. The paper also notes the possible legal barriers to an unconditional ban on the design, sale, distribution, and uses of legal software by non-lawyers. These range from the First Amendment right to free speech, constitutional right to pro se legal representation, interstate commerce doctrine, to antitrust provisions of the Sherman Act. A regime of best practices for the use of legal software or expert systems in law by non-lawyers is proffered. (shrink)

This is an important time to focus on the question of insurance discrimination based on health status. The nation once again is poised to embark on a major health care reform debate. Even as the number of uninsured stands at some 45 million persons, millions more may be poised to lose coverage during the worst economic downturn in generations. In addition, a large number of persons may be seriously under-insured, with coverage falling significantly below the cost of necessary health care. (...) In recent years, the proportion of insured persons who are underinsured has grown by 60% since 2003, reaching an estimated 25 million persons in 2007. Health care costs experienced by insured persons now account for more than 75% of all personal bankruptcies related to medical care. Underlying these figures is a national approach to health care financing for the non-elderly that effectively increases the odds that those who are in poor health status will be uninsured or underinsured. (shrink)

Oriental scholars discuss the concept of corporate personalitywithout any reference to Islamic law. A leading proponent of this view isJoseph Schacht; a western scholar of jurisprudence who contended that Islamicjurisprudence is limited to individual personality and devoid of corporate laws,hence, contractual agreements between corporations has no basis in Islamiclaw. Several scholars and researcher have responded with sufficient literatureon the status of an artificial person in Islamic law, but there are still issues withthe legal implication of corporate personality in the event (...) of financial distress.This study aims to explore Islamic threshold on fundamental principles ofcorporate personalities and its contemporary applications in the situation offinancial trouble. The study will employ the analytical approach in describingthe essential characteristics of a corporation as inherent in Islamic law throughinterpolation from the natural person and the possibility of adapting the existingconventional bankruptcy laws. This study employs an analytical approach to Islamic literature and regular related works. The study found out that eventhough the concept of financial distress has basis in Islamic law, it remainscomplicated as it entails insolvency, bankruptcy and interdiction in a debtorcreditorrelationship. Overall, further efforts need to be done to put theseconcepts into contemporary and applicable perspectives without violatingIslamic fundamental principle of justice and fair dealings. (shrink)

In this paper we examine some of the economic and ethical consequences of different credit market regulations, including usury laws, complete prohibition of interest and providing ease to the borrower upon default. The references to these credit market regulations can be found in many religious and moral philosophy texts. We first examine the effectiveness of these regulations in deterring exploitative lending by developing a model that shows lending can be regulated through either act-based or harm-based regulations. We show that act-based (...) regulations which comprise usury laws and complete prohibition of interest deter lenders more than harm-based regulations which constitute bankruptcy laws. We then analyze that while the regulations may deter certain forms of lending behavior, they may also create certain externalities by contributing towards inequity and societal risk. We propose that a regulator’s choice of implementing credit market regulations maybe dependent on her ethical commitment towards growth and reduction of inequity. We suggest the usury laws are more ethical than bankruptcy laws; however, discouraging the use of debt contracts through prohibition of interest and encouraging the use of risk sharing contracts maybe the most ethical way to regulate the credit markets. (shrink)

Traditionally, civil law jurisdictions in Scandinavia and the continent of Europe have not been willing to acknowledge the appropriateness of extending bankruptcy relief to consumer debtors and discharging any part of their debts. The opposition was based on the importance of upholding the sanctity of contractual obligations: pacta sunt servanda. This attitude stood in contrast to the fresh start philosophy of US bankruptcy law, which embraced a more forgiving attitude, focusing on the reintegration of the insolvent debtor into (...) society, substantially free of debt, after he has filed for bankruptcy and surrendered his non-exempt property for distribution among his creditors. The relaxation of credit controls and the rapid increase in the number of insolvent debtors in the late 1980s and early 1990s has forced many continental jurisdictions to reconsider their traditional opposition. They have since adopted debt adjustment plans providing various forms of debt relief to overcommitted debtors but only a substantial number of years after the initial proceedings. The American reaction has gone in the opposite direction. With the adoption of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, the United States has reversed its century old liberal fresh start tradition. The 2005 Act imposes a formidable means test as well as other preconditions to determine whether a debtor has sufficient discretionary income to pay off twenty percent of his or her unsecured debts under a Chapter 13 plan. If the answer is yes, the debtor is denied the right to file a bankruptcy petition under Chapter 7 of the Bankruptcy Code. This paper asks whether these developments on opposite sides of the Atlantic suggest that facts on the ground are more important than dogma and deeply entrenched beliefs. The author’s answer is that while there is certainly a trend towards convergence between continental European and US approaches to consumer insolvency, it is much too soon to speak of a common culture and a common approach. He notes, however, that Commonwealth jurisdictions have long adopted a means test to determine a debtor’s eligibility for discharge from debt and suggests that continental scholars would have done better to study the Commonwealth experience as embodying a suitable compromise than to flirt with the US fresh start philosophy, only to reject it as too alien to the continental moral sense. (shrink)

L’objet de la présente recherche est d’interroger les mérites de la théorie utilitariste relative aux faillites personnelles, qui est dominante dans la littérature juridique depuis que le courant Law and Economics a gagné en importance. Nous démontrons que l’argumentation utilitariste, qui est assignée aux doctrines de l’acquittement des dettes personnelles par les spécialistes de Law and Economics travaillant dans le domaine du droit des faillites, soulève des questions normatives de taille et créée des tensions quand il s’agit de décrire le (...) phénomène. Ces deux problèmes invitent les théoriciens à proposer des modèles alternatifs pour décrire les conditions dans lesquelles nos systèmes juridiques soulagent les dettes des individus qui ne sont pas en mesure de les honorer. Dans notre ouvrage à paraître, The Virtue of Bankruptcy, nous embrassons ce projet. Ici, nous proposons une étape préliminaire à ce projet plus ambitieux en démontrant que les théories utilitaristes sur lesquelles s’appuient les contributions les plus importantes de la littérature sur la question à ce jour sont perfectibles lorsqu’il s’agit de comprendre les raisons et les circonstances dans lesquelles il est possible d’offrir un nouveau départ à ceux qui n’ont pas respecté leurs obligations financières. (shrink)

The United States is at a crossroad in its treatment of Chapter 11 of the Bankruptcy Code, which deals with reorganization of bankrupt organizations. It is vital that the issues surrounding the debate be properly framed. This paper attempts to do just that by reviewing the evolution of bankruptcy law, assessing the impact of Chapter 11 leniency on societal stakeholders, considering bankruptcy as a strategic option, and addressing the ethical and societal issues that arise from the use (...) of Chapter 11 to avoid massive litigation or to abrogate labor contracts. Serious threats to the underlying fibers of the American system of enterprise are exposed and an assessment of these threats is offered. (shrink)

Private law and regulation are constantly involved in the evaluation of conflicts of interest, judging some of them salutary, with others requiring adjustment. Focusing on the question of conflicts of interest allows us to clarify our vision of when such adjustment is appropriate and, more specifically, when the law should supply an infrastructure for cooperative behavior. Thus, the prism of conflicts of interest provides a lens through which to view basic legal problems that turn on whether individual actors will be (...) deemed responsible to some joint interest or whether they will be at liberty to pursue their individual interests despite the adverse effects of such activity on others. This article proposes a conflicts of interest perspective for examining contract law and its immediate surroundings. It suggests a map of conflicts of interest along three axes: the remedial axis; the axis of positive duties to avoid conflicts; and the axis of the transition from independence to loyalty. Applying the map to contract doctrine, the article examines a number of contract doctrines including: remedies for breach of contract; modification; conditions; good faith in performance; and formation. The article goes on to apply the map of conflicts to two complex fact situations: corporate acquisitions and corporate bankruptcies. The analysis underscores the fact that conflicts of interest rules do not simply protect existing interests, but also contribute to the very constitution of those interests. Recognizing the constitutive role of legal rules raises questions about our ability to determine interests ex ante and thus calls for a more nuanced approach to gauging the incentive effects of a legal regime. (shrink)

Arbitration and insolvency proceedings are legal instruments governed by different objectives and different legal principles. While in arbitration the autonomy of the parties plays a major role, all insolvency proceedings are collective proceedings where autonomy of the parties is strictly limited, the majority of issues are regulated by binding legal provisions and strong controlling powers are vested into insolvency court. Therefore, in this article the authors analyse the issues of compatibility between insolvency proceedings and arbitration. The Lithuanian legal framework which (...) was in force until 30 June 2012 was ambiguous. According to the wording of Article 11 of the previous Law on Commercial Arbitration, disputes connected with bankruptcy shall not be submitted to arbitration. It was not entirely clear whether this provision was restricted to ‘core’ insolvency issues such as opening and conduct of the proceedings, appointment of the office holder, administration of the estate, liquidation etc. or it also included all other questions related with insolvency. The jurisprudence of the Lithuanian courts gave a broad meaning to the restriction expressed in the Law on Commercial Arbitration. Accordingly, such questions as verification of claims and disputes with the creditors were also excluded from arbitration after announcement of bankruptcy of the debtor. The authors argue that distinction should be drawn between cases in which an insolvent enterprise is a claimant and where it is a defendant. It is also important to draw a line between arbitration agreements entered into before announcement of bankruptcy and arbitration agreements concluded by the bankruptcy trustee with the consent of the majority of creditors. In this article, the new Law on Commercial Arbitration which has entered into force on 30 June 2012 is analysed and according to which an insolvent enterprise remains bound by arbitration agreement in both cases where it is a claimant and where it is a defendant. Several contentious issues of the new law are identified and analysed in the article, such as the position of other creditors in the proceedings, relation between arbitration and restructuring procedure, enforceability of arbitration agreement in cases where an insolvent enterprise lacks funding to pay arbitration costs etc. (shrink)

Contemporary academic and policy discussions of corporate governance tend to accord primacy to the interests of shareholders. While the primacy (descriptive or prescriptive) of shareholders is argued for in various ways, others seek to promote a wider stakeholder model of the firm and its governance. In both cases, the interests of creditors tend to be neglected. In this paper, the fundamental position of creditors in a system of corporate law that offers limited liability is reasserted and explained, and the implications (...) explored. It is demonstrated that there are, in effect, two modes of governance possible for a limited liability corporation: the “normal” mode, when shareholders’ interests are primary, and the “distressed” mode, when creditors’ interests are paramount. As a result of this analysis, writers on corporate governance who are influenced by certain managerial myths or economic theories of the firm are encouraged to view the position of shareholders in a more informed light. Writers on business ethics, who often find themselves contending, perhaps implicitly, with inappropriate understandings of the nature of business corporations and their governance, are similarly alerted to the weakness of certain positions perceived as antithetical to their agenda. Finally, business ethicists who advocate a stakeholder perspective are encouraged to recognize the position of creditors and to pay more attention to them as a stakeholder group. (shrink)

This paper uses the bankruptcy proceedings for Enron to discuss the role of financial institutions in business transactions. Using recent work by Dixit a business transaction is portrayed as a prisoners' dilemma problem between competing firms. The financial institution's role in this world is to provide information and enforce contracts so that the parties to the business deal act cooperatively. This role is recognized in the law under the heading of Fiduciary Responsibility. In the Enron case the bankruptcy (...) examiner has argued that the Tier 1 financial institutions for Enron failed to carry out their fiduciary responsibility. As a result, the examiner has asked a fact finder to subordinate the claims of the Tier 1 financial institutions to other debt holders for Enron. (shrink)

Is the dream of EU endangered? This book reviews classic and modern values and virtues, and uses them in order to rethink Europe's present politics and its future. The idea of the Republic was born with the political ethics of ancient Greece. The current international crisis obliges Europe to face the mirror of truth: What has become of the European Idea and how fares the European Constitution? It has been a long road from the Greek Politeia to the present lack (...) of values and financial monomania in Europe, who seems to have lost any harmony between the spirit, the soul and the body of her Constitution: the will and values of the people (material constitution), the text of the Lisbon Treaty (formal constitution) and its current political interpretation and action (real constitution), making Europe a two-tier or three-tier club, far from the dream of the founding fathers. Without republican values and virtues, and failing to uphold the European social model, the European Union would devolve into moral, social and democratic bankruptcy. (shrink)

We shall look for the essence of the contemporary crisis: whether it is only the economic crisis which results in the drop of income, production, demand, crash on the stock exchange and the spectre of bankruptcy of whole states, or whether the economic phenomena originate in the sphere of human spirit and moral values, acquired insufficiently or simply questioned. We put forward a thesis that the economic crisis has its source in the sphere of spirit. Denying the natural law (...) and God’s law included in the Ten Commandments does not make a man happy but introduces divisions, social conflicts and exploitation. For that reason the moral renewal of individuals and societies, showing respect for the dignity of a human being and his/her natural rights must go along with reasonable political and economic actions for the sake of solving the contemporary ‘social issue’. Without moral renewal any other solutions, sooner or later shall turn against a man and cause irreparable damages. (shrink)

Criminal courts make decisions that can remove the liberty and even life of those accused. Civil trials can cause the bankruptcy of companies employing thousands of people, asylum seekers being deported, or children being placed into state care. Selecting the right standards when deciding legal cases is of utmost importance in giving those affected a fair deal. This Element is an introduction to the philosophy of legal proof. It is organised around five questions. First, it introduces the standards of (...) proof and considers what justifies them. Second, it discusses whether we should use different standards in different cases. Third, it asks whether trials should end only in binary outcomes (e.g. guilty or not guilty) or rather use more fine-grained or precise verdicts. Fourth, it considers whether proof is simply about probability, concentrating on the famous 'Proof Paradox'. Finally, it examines who should be trusted with deciding trials, focusing on the jury system. (shrink)

Contemporary neo-Aristotelians disagree about whether Aristotle’s work can contribute to rather than compete with or replace modern political theories, particularly theories that take individual rights seriously. In his Nature, Justice, and Rights in Aristotle’s Politics, Fred Miller says “yes.” In After Virtue, drawing on Aristotle to provide an alternative to what he sees as the moral bankruptcy on which modern political theories rest, Alasdair MacIntyre says “no.” However, I maintain—as does Miller (though on somewhat different grounds)—that MacIntyre is mistaken (...) to think that Aristotelianism and modern political theories are entirely at odds with one another. They are mostly reconcilable, a position I call the ‘compatibility thesis.’ An implication of this is that Aristotle’s thought, especially concerning the common advantage, can clarify and strengthen modern political theories that regard individuals (not the state or society) as morally primary and that advocate protecting them equally via rights under the rule of law. (shrink)

This article examines Harmony Korine's 2012 film, Spring Breakers. Arguing that Korine's film explores the bankruptcy of ethics in advanced capitalism, the article considers two predominate and contrasting theories of contemporary subjectivity: Slavoj Žižek's psychoanalytically-inspired conception of the subject as radical lack and Deleuze's affirmation of the subject through attention to affect and the virtual. In reference to Kant's radical reformulation of the moral law as an empty and tautological form with the concept of the categorical imperative, this article (...) shows that Korine's allegory of the spring break adventure correlates the subject's eagerness to surmount any and all obstacles toward enjoyment to late stage capitalism's increasing encroachment on the absolute limit of deterritorialization. In so doing, the film suggests that neither Deleuze nor Žižek, affirmation nor lack, offer an effective ethical principle for the subject in the face of the real of global capital. (shrink)

Recently we have observed the high volatility and complexity of law and business transactions, as well as the assumption of prepared valuations and self-shaping principles in accounting. Greater independence in a changing environment increases the risk of unethical behaviour. There have been many cases of negative behaviour in accounting, known as a creative, aggressive or fraudulent accounting. Responsibility for bankruptcy and financial failures was pinned on accounting, which shattered the reputation of the accountants concerned. Professional requirements for accountants are (...) high and they have greatly increased, especially in the financial operations sector. However, it is expected that employees will also act ethically. Professionalism is associated in the same way with professional competence and ethical standards. The Code of Professional Ethics in Accounting introduces important ethical principles for accountants. It is worth noticing how the principles refer to human traits, virtues and considering whether to accept and obeying them as an act of conscience. Accountants are facing ethical dilemmas that affect their private life. (shrink)

Introduction -- 1. General obligations. Conflicts of interest -- Uncompensated work -- Community service -- Pro bono work -- Living conditions -- Working conditions -- Layoffs -- Unequal pay -- 2. Obligations to the public. Repressive governments -- Corrupt politicians -- Public officials -- Public opinion -- Public bailouts -- Public reviews -- Public health -- Cultural differences -- 3. Obligations to the client. Self-destructive behavior -- Distrustful behavior -- Dishonest behavior -- Deceptive behavior -- Spendthrift behavior -- Solicitous behavior (...) -- Unrealistic expectations -- Manipulative situations -- 4. Obligations to the profession. Greed -- Insensitivity -- Jealousy -- Betrayal -- Treachery -- Unfairness -- Uncertainty -- Cheating -- 5. Obligations to colleagues. Office affairs -- Working hours -- Labor law violations -- Crediting coworkers -- Accommodating disabilities -- Firm bankruptcy -- Firm loyalties -- Untrustworthy colleagues -- 6. Obligations to the environment. Environmental hypocrisy -- Environmental conflicts -- Contextual conflicts -- Social justice -- Future generations -- Other species -- Reducing waste -- Reducing consumption -- Why ethics matters now. (shrink)

In modern terms the characteristics of efficient working capital management plays a key role for businesses of any sector of the economy. Much of the domestic enterprises in a state of bankruptcy came to him because of a violation of the circulation of working capital. It is often the only way to improve the business and overcome the crisis of insolvency is to conclude long-term contracts for the financing needs in raw materials, i.e. agreements tolling operations. In this tolling (...) interaction is the main consideration of the interests of all parties and ensure the economic benefits of cooperation. Analyzing the legal framework for the organization and operations of tolling the following legal instruments that is currently in force can be highlighted, namely the Customs Code of Ukraine № 4495-VI of 03.02.2015 with amendments and supplements from 02.03.2015, the Tax Code of Ukraine № 2755-VI of 02.12.2010 with amendments of 17.09.2015, the Law of Ukraine "About Foreign Economic Activity" № 960-XII of 16.04.1991 with amendments and supplements from 02.03.2015. The study is dedicated to examining effective interaction of tolling schemes used throughout the world. Classification of tolling existing species is improved. The methodical approach created to assess the tolling scheme out of production for two alternatives to domestic producers: the accumulation of working capital and a loan in the amount of working capital needed for the company to work independently. The proposed running economic and mathematical tool of economic cooperation of manufacturers with tolling subjects will allow domestic enterprises with different initial conditions objectively assess the prospects for further cooperation with tolling scheme for manufacturers and choose the most suitable way out of the tolling scheme production. (shrink)

Fraud, speculative bubbles and collapse, plus the resulting bankruptcies and hard times are a continuing part of the corporate environment. The 21st century is no exception, and its first decade has seen more than its share of abuse. This is somewhat surprising, given the level of regulation and oversight required. The focus here is primarily on Enron as a microcosm of all that can go wrong in a sophisticated, high-tech environment. Enron represents the long-term use of greed based primarily on (...) executive compensation incentives; poor corporate governance; executives willing to break the law or overlook others who did; the use of political lobbying; plus accommodating auditors, attorneys, analysts and regulators. Other fraud and abuse cases considered include WorldCom, Tyco, and Adelphi. In addition, the widespread corruption associated with the stock options scandals and the current housing collapse/banking crisis are reviewed, suggesting that the massive regulatory effort of Sarbanes-Oxley and other reforms have not solved the underlying problems. (shrink)

The art, craft, and science of policing -- Crime and criminals -- Criminal process and prosecution -- The crime-preventive impact of penal sanctions -- Contracts and corporations -- Financial markets -- Consumer protection -- Bankruptcy and insolvency -- Regulating the professions -- Personal injury litigation -- Claiming behavior as legal mobilization -- Families -- Labor and employment laws -- Housing and property -- Human rights instruments -- Constitutions -- Social security and social welfare -- Occupational safety and health -- (...) Environmental regulation -- Administrative justice -- Access to civil justice -- Judicial recruitment, training, and careers -- Trial courts and adjudication -- Appellate courts -- Dispute resolution -- Lay decision-makers in the legal process -- Evidence law -- Civil procedure and courts -- Collective actions -- Law and courts on development and democratization -- How does international law work? -- Lawyers and other legal service providers -- Legal pluralism -- Public images and understandings of courts -- Legal education and the legal academy -- The (nearly) forgotten early empirical legal research -- Quantitative approaches to empirical legal research -- Qualitative approaches to empirical legal research -- The need for multi-method approaches in empirical legal research -- Legal theory and empirical research -- Empirical legal research and policy-making -- The place of empirical legal research in the law school curriculum -- Empirical legal training in the US academy. (shrink)

The unity of the group mind is a psychoplastic unity. In the group mind subjects are integrated through an object and not objects through a subject. It follows, among many much more important consequences, that a scientific analysis and arrangement of the law relating to corporations should proceed in the manner practically indicated in the Law of Limited Companies, Corporations Sole, Trusts, Bankruptcy, Local Government, and so forth, that is to say, by the estatificatian of interests and not by (...) the pretended incorporation of people. (shrink)

The Social Marginalization...In the “enterprise restructuring” process begun in the late 1990s, China’s medium and small-scale state-owned enterprises rapidly converted themselves, through massive sell-offs, mergers and the forming of share-holding cooperatives, into private enterprises, while the larger-scale SOEs strove to reinvent themselves as “modern enterprise systems” through the issuance of shares, by company mergers and sell-offs, or via declarations of bankruptcy. During this process, SOE workers who had retained their jobs and also those who had been “laid off” in (...) the restructuring staged frequent and repeated collective protest actions. Using primary data, this paper seeks to portray the profound social marginalization of workers that has occurred during the SOE restructuring process, and it identifies this factor as being the primary cause of the increase in workers’ collective protests in China in recent years. In the author’s view, the rights to which Chinese workers are entitled under the country’s labor laws have been steadily eroded and diminished by the impact of enterprise restructuring. In a clear case of “closing the stable door after the horse has bolted,” the central government began issuing instructions to safeguard workers’ rights only when the restructuring process had been underway for several years. The wholesale loss of their rights has triggered intense indignation on the part of the workers, and the groundswell of collective protest actions around the country nowadays represents a heart-felt cry for help by an increasingly socially marginalized constituency of many millions. (shrink)

Consumer bankruptcy scholars typically stress either a structural or a cultural account of individuals’ problems with debt. Drawing on the history of poverty research, this article argues that research on consumer overindebtedness and bankruptcy should avoid the pitfall of seeing structural and cultural factors as opposing explanations. Deregulation of the credit industry and an incomplete social safety net are key structural conditions that lead to a culture hospitable to overindebtedness. Furthermore, the interaction of structure and culture has practical (...) policy implications. Structural changes such as interest-rate deregulation inevitably transform both business and consumer culture. Policies designed to create a different consumer culture will have a hard time when pitted against strong structural causes of overindebtedness. At a minimum, efforts to create a culture of personal financial responsibility need a strong structural base, such as public education starting at a young age, and could easily require a generation or more to take hold. (shrink)

continent. 1.3 (2011): 201-207. “Poetry is experience, linked to a vital approach, to a movement which is accomplished in the serious, purposeful course of life. In order to write a single line, one must have exhausted life.” —Maurice Blanchot (1982, 89) Nikos Karouzos had a communist teacher for a father and an orthodox priest for a grandfather. From his four years up to his high school graduation he was incessantly educated, reading the entire private library of his granddad, comprising mainly (...) the Orthodox Church Fathers and the ancient classics. Later on in his life he sold the library for money, only to buy a little more time before he went broke again: “I carry sorrow like a cage/ I got no birds/ as I come back from her hair/ I see the profit emptied/ cool from terror.” (1993, Ι, 101) Nowadays—and ridiculously recently—we are more than apt to speak of a certain insouciance pertaining to the Greek form of expenditure: expenditure without any type of investment, sometimes not (even) symbolic. In the vaults of the European unconscious, this imprudent stance still conjures a “capital punishment” in the form of de-capitation, reflecting back the fear of excess and the terror of its consequences.1 Thus the Greek way of living is very close to what a stranger could have termed as “the Greek way of dying.” Yet, what is not often understood is that the Greek esprit , the same one that invented the maxim μηδ?ν ?γαν (“nothing in excess”), does not experience death solely as an imminent fear of bankruptcy. For it miraculously combines its unconditional acceptance with the promise of a resurrection that is always there in the scents of Spring, from Dionysus to the orthodox Christ: “Everyone resurrects himself through dying [….] Resurrection is the switching of mortalities.” (2002, 94) Hence, if an entire library was imprudently traded for a plate with seven olives, a sliced tomato and some fresh goat cheese, let us not be fooled: this is not the meal of the pauper, but that of “an aristocrat from God” (1993, II, 491) feeding his eloquent loudmouth, ridiculously cut open in an otherwise rock-solid caput . *** To speak of the Greek experience is to speak about a half-dead language that still utters in life what is seemingly excluded from it and thus forbidden to be talked about: death. Death as anything that is out of this world, as something that will never return . Still, along with an experience of death that recently waned as a worn-out academic fashion, the Greek experience is dead too. Nearly 2300 years of written words separating Homer from the fall of Byzantium equal 500 books on a library traded for money: “I am with the killed. Hence my deepest solitude. I do not feel this tremendous macho society, beyond from the fact that it is a ruthlessly consuming one. It is me who pays all the time .” (2002, 57) Let us do the math and see how much this dealing with the Greek experience is costing the poet and how much dealing with the Greek experience might cost us today. *** “I do not guarantee a single word.” (Karouzos, 1993, II, 454) Through its various dialects and forms, the Greek language speaks through an incessant historical dissemination. Anyone who is aware of this terrifying polymorphy and still calls himself a poet, must stand against a white sheet of paper, pen-in-hand, with a very particular duty: to be as fully inconsistent as possible. In the formally ironic uniqueness of the poem, the poet functions as “a band-aid for lesser and greater antinomies.” (1993, I, 251) Of course these antinomies are not exhausted in language—they are historical, political and, alas, existential. Yet, beyond appearances , it is language that ruthlessly encodes them through history, submitting the poet to the temptation of placing them one next to the other on a single white sheet. The closer their neighboring, the greater the scattering of the writer in the ironic uniqueness of the paper. In a work where poetic license is described as a “freedom-impasse” (2002, 51), this task is undertaken in full conscience of its personal consequences: “what I am interested in is to escape my individuality (envisioning the non-ego) […] Nevertheless, my dissociations never achieve duration.” (2002, 74-75) Hence, though poetry is the “deserted direction of will,” (1998, 62) the stance of the poet is not that of a Nietzschean “great man.”2 Whereas drunkenness provides a thread between the poem and the excess it both presupposes and infuses (“Poetry always enlarges. ‘Drunkenness’ is nothing more than that,” (2002, 85)), whereas language flashes in loudmouth spurts of déraison (“When I am alone I do something else. I utter words. For example, while having my ouzo and listening to music I am most likely capable of randomly shouting ‘Electricity!’” (2002, 138)), the poet never gives in to the double affirmation that would eventually risk the “element of pleasure in discourse.” (2002, 80)” It is exactly because the gap of the antinomies is so vast that poetry is not meant to be written with a hammer. Neither does writing consist in a reevaluation of those elements. In short, poetry is not an affirmation of difference, but the surprising beauty of chiming antinomies. We might never transcend them, but it is up to us to put them together. Yet again, this voisinage is not to be identified with the necessity of chance as an eternal return.4 On the contrary it is a return from that very return : Let us treat Yes as a No to No and No as a Yes […] And let us not forget that this pissed affirmation crumbled down Nietzsche’s intellect in the dark paths of this world. (2002, 88) This return from the “vicious circle” should in no way be taken as a form of artistic prudence. Rather it can be seen as a dribble of demonic inconsistency as Dionysus transforms himself into a Christ that is in turn de-theologized: “Who can forbid that? Every man is capable of his own theology, nothing can stop him.” (2002, 73-74) This is a turn towards an existential vision of the world, historically coinciding with a particular political defeat of the Left, to which the poet devoted all his life: after the defeat of the popular front I raised the question “why do we exist?” while others were asking “why we failed.” (2002, 57)5 But most of all it is a return to poetry that exceeds the existential question itself, going beyond the issue of faith. Poetry comes in as a question of return after a defeat that is confessed in full profanity. Though it accepts the necessity of the defeat, it does not affirm it. Though it negates it, the negation is not in the name of a promise to be delivered in the kingdom of heavens. Following a historical and existential defeat, poetry is born post mortem . It signals a return to Christ as “groundless religiousness in the surprise of the real as such” (2002, 72) which is at once a return to the refuge of childhood. It is not a question of endurance towards an eternal return. Rather it is a question on the possibility of an existential return. Returning in a world as someone who cannot enjoy any returns exactly because he is averse to guarantees. A return without returns. *** PHOTOCOPY OF HAPPINESS When I was young I used to pin down cicadas and step on ant nests. I used to stand there silent for hours. With threads I decapitated bees. Now I am a dead man breathing. (Karouzos, 1993, II, 336.) The return to the “paradise of childhood” (2002, 68) constitutes the devouring refuge of its own memory when defeat becomes the synonym of adulthood. The political struggles of a young communist in a country torn up by a civil war right after World War II fraught with incarcerations and exiles. Historically they resulted in the defeat of the communist movement in Greece and opened up a long turbulent road that would peak in the dictatorship of 1967. Existentially they led to a series of disillusionments: mental breakdown, divorce, abandonment of studies in law school. To the question “why do we exist” the answer was poetry. Still this exposé should not be read as a sweeping chronography of a man. For it actually happens to coincide with the historical fate of a nation that after its modern constitution never stopped dreaming of the glories of its past youth, in a present that was (and is) sweepingly disappointing. But isn’t this return to youth finally a way of compensating for a loss of youth that necessarily results in a losing adulthood? Will Greeks, the eternal children of Plato and Nietzsche, ever learn? How to return without dying, how to remember without wasting time? WE ARE IN THE OPEN MEANING Living the coldest mauve night right across Parthenon I went to take a piss on some foliage and I was enjoying the foliage as it was steaming. (Karouzos, 1993, II, 340) Beyond the historical tragedies of modern Greece and away from any personal disappointments, the relation that this land holds with language and history is mediated through the Greek light—whose omnipresence is the very condition of its transcendence. All historical contradictions from Dionysus to Christ took place under this light; all those disseminated dialects were spoken beneath its warmth. To paraphrase Lévinas,6 light is both the condition of the world and of our withdrawal from it—a withdrawal towards the invisibility of God, of the dead, of meta-physics, resulting from the temptation that all is still here, behind this light the visibility of which they once evaded: “birds, the allurement of God.” (1993, I, 17) Under that luminous sky, if Greeks can do anything at all, it is to envision a return that will never come. All they can do is write poetry—which is doing nothing; other than lending an ear to a disseminated language whispering a unity that cannot be promised, as an adulthood in defeat is ready to recognize. Trying “to trap the invisible in visibility” (1993, II, 483) they forget that they have grown up and one day they die—with the promise of return. Hence an additional meaning must be given to this return to childhood. It does not signal salvation but rather its promise. To the ears of an aged continent it means that the return to/of poetry is a losing game, a return without returns. “Europe, Europe… you are nothing more than the continuation of Barabbas.” (1993, I, 295) *** “Life is not there to verify theories.”7 The records show that Karouzos was finally given a second-class pension from the Greek government, at the time when he was being recognized by the literary press as one of Greece’s major contemporary poets. Being neither a bourgeois nor a nobelist, he proclaimed himself to be an anarcho-communist, unconditionally faithful to the utopia of a classless society. He also drank, heavily. “Capitalism made an animal out of man/ Marxism made an animal out of truth/ Shut up.” (1993, II, 369) Perhaps one of the most scandalous divides of our times has been the one between the living and the dead, the latent prohibition that the living should not be concerned with the dead based on the mere impossibility of the dead to be concerned with the living in the first place. What adds to this scandal is that this divide abuses anything that cannot return to us by subsuming it under the same futility. Hence death is no longer “loss” in the usual sense. It no more refers to the things we lost but to our “loss” (of time, money and well-being) as we insist to dwell on them. Death is a waste —of time. It is this waste that we find in the insouciance of Greek expenditure; the waste in dealing with a language that most of its historical part is no longer spoken (a dead language); the waste in translating a poet who is ex definitio untranslatable; the waste of his vision, his money, his life. The waste of dealing with anything that cannot return and that cannot bring in any returns . But it is also the waste of life that poetry itself presupposes, the waste of dealing with invisibility, with anything that is out of this world and thus invokes the fear of death that is in turn—and surprisingly— nowhere to be found. Instead of death, what is there, beyond the light, is the being without us (to recall the Lévinasian il y a ), the mumble of our own nothingness which constitutes the price to be paid for writing poetry under an evergreek light. To understand this to-and-fro, is to realize that poetry is something out of this world that nevertheless takes place in this world, by virtue of this world. But to ridiculously equate this to-and-fro with death as non-existence, is to exile poetry along with its own possibility from this same old world: I do not believe that poetry will ever disappear from this world. […] But I am also sure that it does not have many chances of playing, as you say, a redemptive role in our vertiginous technological future. Without being endangered as a creative need, it will be placed on the side of history. (2002, 32) It is mainly there that we would like to locate the meaning of Nikos Karouzos’s poetry today. If we are willing to include the Greek original it is because we consider that it will be both a waste of time for us to do so (since most of you cannot read Greek) and because it might induce you to the even larger waste of learning it. We would additionally be glad if this small introduction served as an equally wasteful, academically useless piece of reading, gesturing towards a taboo of investing in anything Greek—that is in anything dead among the living, in anything that will never come back and maybe was never here in the first place. This is the only way to reserve for ourselves the possibility of poetry and preserve the light of its promise. “To return: that is the miracle.” (1993, I, 17) Athens, Greece July 10, 2011 NOTES 1 “ Capitale (a Late Latin word based on caput “head”) emerged in the twelfth to thirteenth centuries in the sense of funds, stock of merchandise, sum of money or money carrying interest.[…] The word and the reality it stood for appear in the sermons of St. Bernardino of Siena (1380-1444) ‘… quamdam seminalem rationem lucrosi quam communiter capitale vocamus ’, ‘that prolific cause of wealth that we commonly call capital’” (Braudel, 1992, 232-233). 2 “A great man – a man whom nature has constructed and invented in the grand style – what is he? First : there is a long logic in all of his activity, hard to survey because of its length, and consequently misleading; he has the ability to extend his will across great stretches of his life and to despise and reject everything petty about him, including even the fairest, ‘divinest’ things in the world.” (Nietzsche, 1968, 505, §962) 3 Cf. Deleuze, 1986, 186-9. 4 “Return is the being of becoming, the unity of multiplicity, the necessity of chance: the being of difference as such or the eternal return.” (Deleuze, 189)5 In this 1982 interview Karouzos refers to the defeat of the communist movement in Greece after the civil war of 1946-1949 between the Governmental Army and the Democratic Army of Greece, the military division of the Greek communist party. Karouzos’s father was a member of the communist National Liberation front (EAM) members of which formed the mainl resistance movement (ELAS) in Greece during WWII. The poet was a member of the United Panhellenic Organization of Youth (EPON), which was a youth division of EAM. After the end of the war, ELAS was called to disarmament in view of the formation of a National Army. The members of EAM resigned from the government of national unity and a series of protests led to a 3 year civil war between ELAS and the Government Army. After the defeat of ELAS the Communist party was outlawed and many communists were exiled in deserted Greek islands. Karouzos, who took action in the Greek resistance and was active during the Greek civil war, was exiled in Icaria on 1947 and in Makronisos on 1953 where he was called two years earlier to do his military service. 6 “Existence in the world qua light, which makes desire possible, is then, in the midst of being, the possibility of detaching oneself from being. To enter into being is to link up with objects; it is in effect a bond that is already tainted with nullity. It is already to escape anonymity. In this world where everything seems to affirm our solidarity with the totality of existence, where we are caught up in the gears of a universal mechanism, our first feeling, our ineradicable illusion, is a feeling or illusion of freedom. To be in the world is this hesitation, this interval in existing, which we have seen in the analyses of fatigue and the present.” (Lévinas, 1988,43-4) 7from a TV interview. THE POETRY OF NIKOS KAROUZOS From Redwriter [ Ερυθρογρ?φος ], in Collected Works, Vol . II, Athens: Ikaros. 1993, 463-4. [Athens: Apopeira, 1990, 9-10.] JESUS ANTI-OEDIPUS* Why were we once saving till the fifth day the Paschal lamb? The scriptures say: with this victim’s meat we ought to cleanse all of our senses. To give life to the whitest wave miraculous odors in the extension of the chest. Ideals to death. For us to witness the illustrious dawns of Absinthe and for the soul to be a deeply carved ornament on the fore we named will. Then many deer running amidst the evergreen growth with watery hymns, then, the unintended angels descending with heights spiraling in their momentum offer themselves to the luminous Adventure. Whence the need for speech and our sufferings covered with flags like the glorified dead. An incorporeal finger pointing at the flamboyant and fragrant holocausts within the tired horizons and the exhausted breadths with joys of the mistletoe on fire and shivering all of the green-leaved love. Something would have chirped again had we not driven it away— maybe the ewe’s grass. Something would have called us to the eternal resurrection— maybe the grace of spring. But now our heart is fiercely blinded, withdrawn to the appearances of Hades. Silence and ice incessantly cover the Infant Spirit in thatched times. While the cherry trees are dreaming faintly glowing in absolute darkness there’s nothing the Babylonians can contemplate in labs with automatic colored lights. How to rejoice now in the fifth day of the lamb? We have forked the stars. We’ve gradually become supposedly sublime with plucked chimeras in our hands. Avenged relentlessly by science. *Though the poem appears in a 1990 collection, it was actually written in 1968. Hence the reader must be aware in not associating Karouzos’ Anti-Oedipus with the famous 1972 work of Deleuze and Guattari, given that the former precedes the latter. ΙΗΣΟΥΣ ΑΝΤΙ-ΟΙΔΙΠΟΥΣ Γιατ? κρατο?σαμε κ?ποτε ?ς την π?μπτη μ?ρα το πασχαλιν? πρ?βατο; Τα κε?μενα λ?νε: μ’ αυτο? του θ?ματος το κρ?ας ?πρεπε να καθαρ?σουμε ?λες τις αισθ?σεις. Για να δ?σουμε κ?μα στη ζω? λευκ?τατο θαυμ?σιες ευωδι?ς στην ?κταση του στ?θους. Ιδανικ? στο χ?ρο. Για να βλ?πουμε τα λαμπρ? χαρ?ματα του ?ψινθου και να ’ναι η ψυχ? στ?λισμα βαθυχ?ρακτο της πλ?ρης που την ε?παμε θ?ληση. Τ?τε πολλ?ς δορκ?δες τρ?χοντας αν?μεσα στην καταπρ?σινη φ?ση με τους υδ?τινους ?μνους, τ?τε, κατεβα?νοντας οι αθ?λητοι ?γγελοι με κυλινδο?μενο το ?ψος στην ορμ? τους χαρ?ζονται της αστραφτερ?ς Περιπ?τειας. ?θεν η μιλι? γι’ αυτ? χρει?ζεται και τα δειν? σκεπ?ζονται ωσ?ν τους τιμημ?νους νεκρο?ς με σημα?ες. Ασ?ματο δ?χτυλο δε?χνει τα φλογ?δη και μοσχοβ?λα ολοκαυτ?ματα στους κουρασμ?νους ορ?ζοντες στα εξουθενωμ?να πλ?τη καθ?ς αν?βουν οι χαρ?ς του νερα?δ?ξυλου και τρ?μει ολ?κληρη η πρασιν?φυλλη αγ?πη. Κ?τι θα κελαηδο?σε π?λι αν δεν το δι?χναμε— μπορε? της προβατ?νας το χορτ?ρι. Κ?τι θα μας καλο?σε στην απ?ραντη αν?σταση— μπορε? του ?αρος η χ?ρη. Μα η καρδι? μας ?γρια τυφλ?θηκε π?ρασε στα φαιν?μενα του ?δη. Σιγ? και π?γος αδι?κοπα σκεπ?ζει στους αχυρ?νιους καιρο?ς το Ν?πιο Πνε?μα. Την ?ρα που ονειρε?ονται οι βυσσινι?ς και λ?μπουν αμυδρ? μεσ’ στο απλ?τατο σκοτ?δι τ?ποτα δε στοχ?ζονται οι βαβυλ?νιοι στα εργαστ?ρια με τ’ αυτ?ματα χρωματιστ? φ?τα. Π?ς να χαρο?με πια την π?μπτη μ?ρα του προβ?του; Φουρκ?σαμε τ’ αστ?ρια. Γ?ναμε σιγ?-σιγ? δ?θεν υπ?ροχοι με μαδημ?νες χ?μαιρες στα χ?ρια. Μας ν?μεται σκληρ? η επιστ?μη. From: Redwriter [Ερυθρογρ?φος], in Collected Works, Vol. II, Athens: Ikaros. 1993, 472. [Athens: Apopeira, 1990, 18.] DIALECTΙCS OF SPRING Christ the straight angle; Christ the Pythagorean theorem. Christ the infinitesimal calculus from above the blessed Sets Christ. Christ the tessellation of massive particles Christ the zero mass. Hence we spray numbers and fields of lust. We are carabineers of diseased logic plus something— Observed means observer and Hekate The darkness luminous and light in the dark Astarte banqueters demons from today. ΔΙΑΛΕΚΤΙΚΗ ΤΟΥ ΕΑΡΟΣ Χριστ?ς η ορθ? γων?α· Χριστ?ς το πυθαγ?ριο θε?ρημα. Χριστ?ς ο απειροστικ?ς λογισμ?ς ?νωθεν ?λβια Χριστ?ς τα Σ?νολα. Χριστ?ς η ψηφιδογραφ?α στα μαζικ? σωμ?τια Χριστ?ς η μ?ζα μηδ?ν. ?ρα ψεκ?ζουμε αριθμο?ς και πεδ?α λαγνε?ας. Ε?μαστε τυφεκιοφ?ροι νοσο?σης λογικ?ς και κ?τι-- παρατηρο?μενο σημα?νει παρατηρητ?ς και Εκ?τη σκ?τος το π?μφωτο και φως εν τ? σκοτ?? η Αστ?ρτη συνδαιτημ?νες δα?μονες απ’ ?ρτι. From: Redwriter [Ερυθρογρ?φος], Athens: Apopeira, 1990, 18. [1993, II, 472]. CREDO (as we are used to say in Latin) Α I believe in one Poet expelled from heavens / fugitive from the god and vagabond, Empedocles / and here on earth / exile on the earth etc. of Baudelaire /. Β I believe in one Computer inside thunder and through matter. Γ Suffering undefiled / substantive / the Poet uplifts himself slow-burning suicidal implying lengthy sleeps. Δ Cutting down on prospective mistakes. Ε Of all things visible and invisible officiating the onion-peelings. Ζ The Poet has nothing / see the departed /. Η I believe in one Poet that says: madness I enjoy; he ridicules existence; let me light up from my mana. Θ Syntax he doesn’t care about when musicality commands him. Along with still more licenses, and Ts are played according to the concept sound anywhere. E.g. the winters here, he winters there; it will not come—I will not rest, etc. etc. Ι The Poet exercises thought until it’s stripped down. Κ And if he’s Greek he must always study the fineness of Attica, in light, mountains, fields and sea. For this fineness teaches language. Λ And if he’s deeply destined the Poet expresses the unexplainable of the explained; he happens to be a rightful heir to the scientist and his predecessor. Μ On the froth he does not last; the Poet blusters at the bottom of the pot. Ν Flamebred and never redeemed. Ξ The Poet must sometimes say: what a consumption of presence — be a bit lonely for a change! Ο The Poet is twilit. Π He is susceptible of deaths and resurrections. Ρ He looks from the corner of his eye and exists in a glance. Σ He follows behind the mother. Τ Eveningless when it comes to age. Υ I believe in one Poet who says: let the purities coincide. Until the Corinth of the Universe or even further. Φ In a higher despair. Χ In a brighter quintessence. Ψ In one sensation that lifts off. Ω Forgiving everyone. CREDO (ως ε?θισται να λ?με λατινιστ?) Α Πιστε?ω εις ?να Ποιητ?ν εκτ?ς ουρανο? / φυγ?ς θε?θεν και αλ?της, Εμπεδοκλ?ς / και επ? της γης / εξ?ριστος π?νω στη γη κ.λπ. του Βωδελα?ρου /. Β Πιστε?ω εις ?να Υπολογιστ?ν εντ?ς κεραυνο? και δια της ?λης. Γ Υποφ?ροντας ?χραντα / ουσιαστικ?ν / ο Ποιητ?ς ανατε?νεται βραδυφλεγ?ς αυτ?χειρας εξυπακο?οντας πολ?ωρους ?πνους. Δ Τα υποψ?φια λ?θη λιγοστε?οντας. Ε Ορατ?ν τε π?ντων και αορ?των ιερουργ?ντας την αποκρομμ?ωση. Ζ Ο Ποιτ?ς ?χει τ?ποτα / βλ?πε τους αναχωρ?σαντες /. Η Πιστε?ω εις ?να Ποιητ?ν που λ?ει: η τρ?λα μ’ αρ?σει· γελοιοποιε? την ?παρξη· ας αν?ψω απ’ τη μ?να μου. Θ Συνταχτικ? δεν το γνοι?ζεται στην προσταγ? της μουσικ?τητας. Μαζ? και μ’ ?λλες ακ?μη λευτερι?ς, και τα νυ πα?ζονται κατ? την ?ννοια ?χος οπουδ?ποτε. Π.χ. τον χειμ?να εδ?, το χειμ?να εκε?· δε θ? ’ρθει – δεν θα καταλαγι?σουμε, κ. λπ. κ.λπ. Ι Ο Ποιητ?ς γυμν?ζει τη σκ?ψη σε απογ?μνωση. Κ Κι αν ε?ναι ?λληνας οφε?λει να σπουδ?ζει π?ντοτε της Αττικ?ς τη λεπτ?τητα, σε φως, βουν?, χωρ?φια και θ?λασσα. Διδ?σκει γλ?σσα η λεπτ?τητα το?τη. Λ Κι αν ε?ναι βαθι? πεπρωμ?νος ο Ποιητ?ς εκφρ?ζει το ανεξ?γητο του εξηγητο?· τυγχ?νει ν?μιμος δι?δοχος του επιστ?μονα και προκ?τοχ?ς του. Μ Στον αφρ? δεν ?χει δι?ρκεια· στο πατοκ?ζανο μα?νεται ο Ποιητ?ς. Ν Φλογοδ?αιτος και ποτ? ξελυτρωμ?νος. Ξ Ο Ποιητ?ς κ?ποτε πρ?πει να λ?ει: μεγ?λη καταν?λωση παρουσ?ας – γενε?τε και λ?γο μοναξι?ρηδες! Ο Ο Ποιητ?ς ε?ναι αμφ?φλοξ. Π Επιδ?χεται θαν?τους και αναστ?σεις. Ρ Ακροθωρ?ζει και υπ?ρχει σε ξαφνοκο?ταγμα. Σ Ε?ναι ουραγ?ς της μητ?ρας. Τ Αν?σπερος απ? ηλικ?α. Υ Πιστε?ω εις ?να Ποιητ?ν που λ?ει: να συμπ?σουν οι αγν?τητες. Μ?χρι την Κ?ρινθο του Σ?μπαντος ? μακρ?τερα. Φ Σε αν?τερη απελπισ?α. Χ Σε φαειν?τερη πεμπτουσ?α. Ψ Σε μια α?σθηση που πτηνο?ται. Ω Συγχωρ?ντας τους π?ντες. From Large Sized Logic [ Λογικ? μεγ?λου σχ?ματος ], Athens: Erato, 1989, n.p. [1993, II, 521-3]. (shrink)

To discuss Professor Lindsay's doctrine of ‘Breves Breviantes’ would involve writing a long article, for which there is no space in the April number of the Class. Quart. But it would be wrong in me to pass his treatment of Plaut. Bacch. 1106 by without comment. What he calls ‘a sane view of the law of B.B.’ involves the emendation of a number of lines which are in other respects quite above suspicion. In these circumstances would it not be the (...) wiser course to reconsider the supposed ‘sane law’ rather than to attempt to alter the text so as to make it fit a law which is not admitted by some of the most eminent of modern critics ? Emendation is particularly unfortunate in this instance, because the metre is anapaestic, and the suggestion of Professor Lindsay that the word Philoxene may be ‘a gloss to indicate the speaker or a misinterpretation of some marginal indication of a speaker’ is surely ill-considered; for the speaker is Nicobulus, and the speakers of adjacent lines are given correctly, so far as I see, in the MSS. Such a gloss would, then, be meaningless. Professor Lindsay's attempt at emendation of this line is, in fact, striking evidence of the bankruptcy of the ‘sane view‘ of iambic shortening to which he has unfortunately committed himself. (shrink)