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Jenner & Block Partner Ronald R. Peterson discussed the impact of the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 on legal practitioners and consumers at a recent DePaul University College of Law symposium. The panel session, entitled “BAPCPA: What Do We Know and When Did We Know It?” was held in conjunction with the Commercial Law League of America’s Annual Meeting.
One “understated” aspect of the BAPCPA is its impact on commercial business attorneys, said Mr. Peterson. For instance, one provision now puts the impetus on debtors’ attorneys to ensure that the debtors’ assets are accurately valued for the court. Mr. Peterson noted that, while attorneys can never be “absolute guarantors,” at the minimum they should adopt “best business practices” to establish verification of the assets.
The panelists also discussed the BAPCPA provision requiring individual consumers to receive credit counseling, and highlighted provisions of the act concerning key employee retention plans (KERPs), post-petition transfers, the use of either wholesale or retail price as “replacement value,” among other things.
In addition to Mr. Peterson, the panel included Abraham E. Brustein, an attorney at Dimonte & Lizak, LLC; the Hon. Jack B. Schmetterer of the U.S. Bankruptcy Court, Northern District of Illinois; and Alan C. Hochheiser, attorney at Weltman, Weinberg & Reis.