Conference Proceeding

Response to Professor Gross: Taking the Interests of the Community into Account in Bankruptcy—A Modern-Day Tale of Belling the Cat

Barry S. Schermer

Professor Gross’ proposal to take community interests into account in bankruptcy is reminiscent of the proposal to bell the cat. Both suggestions present a solution on the theoretical level, but both are certain to fail in their application because they do not consider present realities. The community interest argument fails on three fronts: definition, application, and the role of the decisionmaker. After a short illustration, each shortcoming will be addressed in turn.