Support for Scholars on Important Research

A Research Grant Committee, chaired by ABI Vice President - Research Prof. Margaret Howard, seeks out proposals and makes decisions on projects for funding. Other committee members include C.R. (Chip) Bowles, Prof. Ralph E. Brubaker, Nancy A. Peterman, Hon. Wesley W. Steen and Prof. Nancy B. Rapoport.

The Endowment's first grant was awarded in 1998 to Prof. Marianne Culhane and Prof. Michaela White of Creighton University School of Law. Culhane and White produced an empirical study of the repayment capacity of chapter 7 debtors under the means test then under consideration by Congress. The widely cited study provided critical guidance to Congress as it considered "needs-based" bankruptcy. The success of the first grant launched the ABI Endowment Fund as a significant source for academic funding on important research topics.

Scholars seeking funding should consult the ABI Web site for guidelines and procedures on the grant application process.

Recent Grants of Note: Fees in Consumer Cases

The ABI Endowment Fund awarded an $82,500 grant in 2009 to Professor Lois R. Lupica at the University of Maine School of Law for a pilot study of whether the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA) has substantially increased the costs of bankruptcy for consumer debtors and their creditors. Many experts and advocates have expressed concern that BAPCPA has significantly raised costs for consumer debtors and their creditors since its enactment in October 2005 because of the additional fees and conditions that must be met for a consumer to file and receive a discharge.

Prof. Lupica, a former ABI Resident Scholar, released her results of the pilot study at ABI’s 2009 Winter Leadership Conference. Click here to read the report. Prof. Lupica will now engage in a full-scale national study on consumer bankruptcy expenses in early 2010, with a targeted completion date of Winter 2011. Her study is also supported by a grant from the NCBJ Endowment.

Bankruptcy Pro Bono Legal Service Provider Database

A grant in the amount of $26,950 was awarded in 2008 to the Institute for Financial Literacy to develop a bankruptcy pro bono legal service provider resource database.  The online database is a vital long-term resource for consumers, social service agencies, credit counseling agencies and others who need to contact pro bono, or free, legal service providers that offer bankruptcy services. The database can be found on ABI's homepage www.abiworld.org.

The Institute for Financial Literacy built the comprehensive database of pro bono providers by directly contacting all state bar associations, legal services offices, law schools and established pro bono organizations.

The following information has been captured in the database:

• Organization contact information
• Chapters of bankruptcy for which representation is provided
• Other matters handled (for example foreclosures, 341 meetings)
• Income eligibility guidelines
• Limits on representations, if any
• Representations by lawyers or non-lawyers
• Representations of clients or just offering assistance in preparation of filings
• Arrangement of credit counseling and debtor education
• Preparation of court fee waiver for clients

Professional Compensation Study

The ABI Endowment Fund awarded $346,000 in 2005 for a ground-breaking study which revealed that numerous factors, such as the presence of creditors' committees, influenced the total professional costs of chapter 11 bankruptcy cases. Study reporter Stephen J. Lubben, the Daniel J. Moore Professor of Law at Seton Hall University School of Law, looked at more than 1,000 chapter 11 bankruptcy cases that were filed in 2004. The findings were released at ABI's 2007 Winter Leadership Conference. Click here to read the report.

"The fee study represents the most comprehensive set of data of a large sample of chapter 11 cases ever compiled by an independent empirical study," said Chip Bowles Jr. of Greenbaum Doll & McDonald PLLC (Louisville, Ky.), the chairman of ABI's professional fee study advisory board. "It constitutes a vital source of information about both the implications of the compensation of professionals in chapter 11 as well as the practice of chapter 11 cases in general. The high quality and vast quantity of data gathered by the fee study shows that ABI's faith in the project and the reporter was well-placed."

Debt Symposium (University of Illinois College of Law)

In 2008, the ABI Endowment provided $50,000 in support of a major academic conference on the causes and consequences of debt. An international galaxy of scholars, including Prof. Elizabeth Warren of Harvard Law School (pictured at right), addressed debt from a variety of perspectives such as law, finance, history, psychology, philosophy and neuroscience. The resulting papers will be published in 2010 by Oxford University press.

(Photo Credit: Terry Neutz Hayden, University of Illinois College of Law)

Law, Business School Competitions

The Endowment financially supports both the ABI Chief Judge Conrad B. Duberstein Memorial National Bankruptcy Moot Court Competition for law schools and the ABI Corporate Restructuring Competition for graduate business schools. These competitions will help form the next generation of skilled professionals.

Other Recently Completed Grants on Consumer and Business Bankruptcy Topics

Utah State University (Dr.Jean Lown, Ph.D.) A financial and demographic study of serial bankruptcy filers in 10 bankruptcy districts to determine (a) incidence of serial filings pre-BAPCPA and (b) a predictive model of serial filers using logistic regression analysis.	$30,423
University of Miami Law School. (Prof. William Widen) An empirical study of the use of substantive consolidation in chapter 11 cases.	$22,000
Rise Foundation, Memphis, Tenn. (Dr. Phyllis Betts, Ph.D.) Study of 1,000 bankruptcy filers in the Memphis area to determine the profile, causes and consequences of consumer bankruptcies in America's busiest bankruptcy district.	$21,100

Other Pending Grants on Consumer and Business Bankruptcy Topics

Creditors' Committee Study ( Prof.Michelle M. Harner) The research study is designed to empirically assess the effectiveness of creditors' committees in serving the positive role intended by the Code.	$30,000
Coalition for Consumer Debtor Education. (Dr. Richard Wiener and Prof. Susan Block-Lieb) The study will compare the efficacy of credit counseling as a precondition to filing under BAPCPA with traditional counseling not in connection with bankruptcy.	$17,500
University of Virginia, McIntire School of Commerce (Prof. David C. Smith) Examination of claims trading in chapter 11 cases. The study will document the extent to which ownership of claims changes hands and the impact that claims transfer has in Chapter 11.	$36,900
Harvard Law School (Jeanne Charn) Study of the impact of BAPCPA on ProBono, LowBono, ProSe and Petition Preparer filings.	$7,500

The Easiest Way to Support the ABI Endowment Fund

Another easy way to support the ABI Endowment Fund is through the Monthly Giving Program. Choose from two convenient options - direct debit from checking or recurring credit card transactions. We hope that these affordable options will enable us to expand our donor base to include all members.

Our current online donation system supports recurring credit card donations when making a donation.

For automatic bank debits or for pledged recurring donations, please download this form.

ABI Endowment Accepts Stock Donation

Donating a charitable gift of stock or mutual fund shares is a

great way to support the ABI Endowment Fund and receive a tax break. Generally, stock or mutual fund donations are particularly attractive if they have increased in value since the beginning of the tax year. In most cases, you will receive a charitable deduction for the value of the donated shares and avoid paying capital gains tax on the increased value of the donated shares. (For additional information regarding the tax implications of your specific donation, please contact your tax advisor.)

To initiate a gift of stock to the American Bankruptcy Institute, please contact the ABI at 703-739-0800 or email ABI's Chief Financial Officer, Kathy Sheehan. Upon receiving information about the donor and the stock donation, we will arrange for a transfer of funds through our investment advisors.

Special Events for Major Supporters

Members who contribute at or above the Benefactor ($5,000 and up) level are invited to a special social event at ABI's Annual Spring Meeting. In 2009, a reception hosted by Bridge Associates LLC was held in the lower atrium of the new Gaylord National Resort & Convention Center. Donors were also invited to attend a dessert reception during the Winter Leadership Conference.

Photo: Atrium at the new Gaylord National Resort & Convention Center just outside Washington, D.C.

(photo courtesy of Gaylord hotels)

Annual ABI Endowment Golf Tournament

Each September a golf and tennis fundraiser co-sponsored by ABI and the New York Institute of Credit is held to help raise funds for the ABI Endowment and select charities. The 2010 event is scheduled for September 21 in northern New Jersey.

To make a donation, or for further information on the ABI Endowment, please contact ABI at (703) 739-0800 or send an email to endowment@abiworld.org. You may also make a donation online by clicking this link. Thank you for your generous support!