Notice of closure attached to the door of a computer store the day after its parent company declared "bankruptcy" (strictly, put into administration—see text) in the United Kingdom.

Bankruptcy is a legal status of an insolvent person or an organisation, that is, one who cannot repay the debts they owe to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor.

Bankruptcy is not the only legal status that an insolvent person or organisation may have, and the term bankruptcy is therefore not the same as insolvency. In some countries, including the United Kingdom, bankruptcy is limited to individuals, and other forms of insolvency proceedings, for example liquidation and administration, are applied to companies. In the United States the term bankruptcy is applied more broadly to formal insolvency proceedings.

Etymology[link]

The word bankruptcy is formed from the ancient Latin bancus (a bench or table), and ruptus (broken). A "bank" originally referred to a bench, which the first bankers had in the public places, in markets, fairs, etc. on which they tolled their money,^{[clarification needed]} wrote their bills of exchange, etc. Hence, when a banker failed, he broke his bank, to advertise to the public that the person to whom the bank belonged was no longer in a condition to continue his business. As this practice was very frequent in Italy, it is said the term bankrupt is derived from the Italian banca rotta, broken bank (see e.g. Ponte Vecchio).^[1]

History[link]

In Ancient Greece, bankruptcy did not exist. If a man owed and he could not pay, he and his wife, children or servants were forced into "debt slavery", until the creditor recouped losses via their physical labour. Many city-states in ancient Greece limited debt slavery to a period of five years and debt slaves had protection of life and limb, which regular slaves did not enjoy. However, servants of the debtor could be retained beyond that deadline by the creditor and were often forced to serve their new lord for a lifetime, usually under significantly harsher conditions.

In the Torah, or Old Testament, every seventh year is decreed by Mosaic Law as a Sabbatical year wherein the release of all debts that are owed by members of the community is mandated, but not of "foreigners".^[2] The seventh Sabbatical year, or forty-ninth year, is then followed by another Sabbatical year known as the Year of Jubilee wherein the release of all debts is mandated, for fellow community members and foreigners alike, and the release of all debt-slaves is also mandated.^[3] The Year of Jubilee is announced in advance on the Day of Atonement, or the tenth day of the seventh Biblical month, in the forty-ninth year by the blowing of trumpets throughout the land of Israel.

In Islamic teaching, according to the Qur'an, an insolvent person was deemed to be allowed time to be able to pay out his debt. This is recorded in the Qur'an's second chapter (Sura Al-Baqara), Verse 280, which notes: "And if someone is in hardship, then let there be postponement until a time of ease. But if you give from your right as charity, then it is better for you, if you only knew."

The Statute of Bankrupts of 1542 was the first statute under English law dealing with bankruptcy or insolvency.^[4] Bankruptcy is also documented in East Asia. According to al-Maqrizi, the Yassa of Genghis Khan contained a provision that mandated the death penalty for anyone who became bankrupt three times.

A failure of a nation to meet bond repayments has been seen on many occasions. Philip II of Spain had to declare four state bankruptcies in 1557, 1560, 1575 and 1596. According to Kenneth S. Rogoff, "Although the development of international capital markets was quite limited prior to 1800, we nevertheless catalog the numerous defaults of France, Portugal, Prussia, Spain, and the early Italian city-states. At the edge of Europe, Egypt, Russia, and Turkey have histories of chronic default as well."^[5]

Modern law and debt restructuring[link]

The principal focus of modern insolvency legislation and business debt restructuring practices no longer rests on the elimination of insolvent entities but on the remodeling of the financial and organisational structure of debtors experiencing financial distress so as to permit the rehabilitation and continuation of their business.

For private households, it is argued to be insufficient to merely dismiss debts after a certain period. It is important to assess the underlying problems and to minimise the risk of financial distress to re-occur. It has been stressed that debt advice, a supervised rehabilitation period, financial education and social help to find sources of income and to manage household expenditures better need to be equally provided during this period of rehabilitation (Reifner et al., 2003; Gerhardt, 2009; Frade, 2010). In most EU Member States, debt discharge is conditioned by a partial payment obligation and by a number of requirements concerning the debtor’s behavior. In the United States (US), discharge is conditioned to a lesser extent. Nevertheless, it should be noted that the spectrum is broad in the EU, with the UK coming closest to the US system (Reifner et al., 2003; Gerhardt, 2009; Frade, 2010). Other Member States do not provide the option of a debt discharge. Spain, for example, passed a bankruptcy law (ley concursal) in 2003 which provides for debt settlement plans that can result in a reduction of the debt (maximally half of the amount) or an extension of the payment period of maximally five years (Gerhardt, 2009); nevertheless, it does not foresee debt discharge.^[6]

Fraud[link]

Bankruptcy fraud is a white-collar crime. While difficult to generalise across jurisdictions, common criminal acts under bankruptcy statutes typically involve concealment of assets, concealment or destruction of documents, conflicts of interest, fraudulent claims, false statements or declarations, and fee fixing or redistribution arrangements. Falsifications on bankruptcy forms often constitute perjury. Multiple filings are not in and of themselves criminal, but they may violate provisions of bankruptcy law. In the U.S., bankruptcy fraud statutes are particularly focused on the mental state of particular actions.^[7][8] Bankruptcy fraud is a federal crime in the United States.

Bankruptcy fraud should be distinguished from strategic bankruptcy, which is not a criminal act, but may work against the filer.

All assets must be disclosed in bankruptcy schedules whether or not the debtor believes the asset has a net value. This is because once a bankruptcy petition is filed, it is for the creditors, not the debtor to decide whether a particular asset has value. The future ramifications of omitting assets from schedules can be quite serious for the offending debtor. A closed bankruptcy may be reopened by motion of a creditor or the U.S. trustee if a debtor attempts to later assert ownership of such an "unscheduled asset" after being discharged of all debt in the bankruptcy. The trustee may then seize the asset and liquidate it for the benefit of the (formerly discharged) creditors. Whether or not a concealment of such an asset should also be considered for prosecution as fraud and/or perjury would then be at the discretion of the judge and/or U.S. Trustee.

In individual countries[link]

Australia[link]

The Bankruptcy Act 1966 (Commonwealth) is the legislation that governs bankruptcy in Australia. Only individuals can become bankrupt; insolvent companies go into liquidation or administration (see administration (insolvency)). There are three "parts" of the act under which the vast majority of "acts of bankruptcy" fall. Part IV (Full Bankruptcy), Part IX Debt Agreements and Part X Personal Insolvency Agreements. Agreements refer specifically to arrangements between creditors and debtors, whereas Part IV relates to full bankruptcy and is generally synonymous with "bankruptcy".

A person or debtor can declare himself or herself bankrupt by lodging a debtor's petition with the Official Receiver, which is the Insolvency and Trustee Service Australia (ITSA). A person can also be made bankrupt after a creditor's petition results in the making of a sequestration order in the Federal Magistrates Court. To declare bankruptcy or for a creditors petition to be lodged, a minimum debt of $5,000 is required.

All bankrupts are required to lodge a Statement of Affairs document with ITSA, which includes important information about their assets and liabilities. A bankruptcy cannot be annulled until this document has been lodged.

Ordinarily, a Part IV bankruptcy lasts three years from the filing of the Statement of Affairs with ITSA. In the case of a debtor's petition, the Statement of Affairs is filed with the petition and the three year period commences immediately. However, in the case of a creditor's petition, the Statement of Affairs will rarely be filed on the same day the court order is made. If the bankrupt fails to lodge the document within a certain period of time, he or she can be prosecuted and fined.

A Bankruptcy Trustee (in most cases this is the Official Receiver) is appointed to deal with all matters regarding the administration of the bankrupt estate. The Trustee's job includes notifying creditors of the estate and dealing with creditor inquiries; ensuring that the bankrupt complies with his or her obligations under the Bankruptcy Act; investigating the bankrupt's financial affairs; realising funds to which the estate is entitled under the Bankruptcy Act and distributing dividends to creditors if sufficient funds become available.

For the duration of their bankruptcy, all bankrupts have certain restrictions placed upon them under the Act. For example, a bankrupt must obtain the permission of his or her trustee to travel overseas. Failure to do so may result in the bankrupt being stopped at the airport by the Australian Federal Police. Additionally, a bankrupt is required to provide his or her Trustee with details of income and assets. If the bankrupt does not comply with the Trustee's request to provide details of income, the Trustee may have grounds to lodge an Objection to Discharge, which has the effect of extending the bankruptcy for a further five years.

The realisation of funds usually comes from two main sources: the bankrupt's assets and the bankrupt's wages. There are certain assets that are protected, referred to as "protected assets". These include household furniture and appliances, tools of the trade and vehicles up to a certain value. All other assets of value will be sold. If a house or car is above a certain value, the bankrupt can buy the interest back from the estate in order to keep the asset. If the bankrupt does not do this, the interest vests in the estate and the trustee is able to take possession of the asset and sell it.

The bankrupt will have to pay income contributions if his or her income is above a certain threshold. The threshold is indexed biannually in March and September, and varies according to the number of dependents the bankrupt has. The income contributions liability is calculated by halving the amount of income that exceeds the threshold. If the bankrupt fails to pay the contributions due, the Trustee can issue a notice to garnishee the bankrupt's wages. If that is not possible, the Trustee may lodge an Objection to Discharge, effectively extending the bankruptcy for a further five years.

Bankruptcies can be annulled prior to the expiration of the normal three year period if all debts are paid out in full. Sometimes a bankrupt may be able to raise enough funds to make an Offer of Composition to creditors, which would have the effect of paying the creditors some of the money they are owed. If the creditors accept the offer, the bankruptcy can be annulled after the funds are received.

After the bankruptcy is annulled or the bankrupt has been automatically discharged, the bankrupt's credit report status will be shown as "discharged bankrupt" for some years. The number of years varies depending on the company issuing the report, but the report will eventually cease to record that information.

Certain limited information on Bankruptcy Law in Australia can be found at the ITSA web site.^[9]

Brazil[link]

In Brazil, the Bankruptcy Law (11.101/05) disciplines judicial or extrajudicial recuperation & Bankruptcy and is only applicable to private companies, except for financial institutions, credit cooperatives, consortia, entity of supplementary schemes, societies operating health care plan, society of capitalisation and other entities legally treated as issues. This is not applicable to public companies.

Current law covers three legal proceedings. The first one is bankruptcy itself ("Falência"). Bankruptcy is the judicial liquidation procedure for an insolvent merchant that promotes the removal of the debtor from its activities, aiming to preserve and optimise productive use of assets, assets and productive resources, including intangible assets, of the company. The final goal of bankruptcy is to liquidate company assets and debtors payment.

The second one concerns Judicial Recuperation ("Recuperação Judicial"). Its goal is to allow the overcoming of the economic-financial crisis situation of the debtor, in order to allow the continuation of the source producer, the employment of workers and the interests of creditors, promoting, thus, the preservation of the company, its social function and stimulate the economic activity. It's a judiciary procedure required by the debtor who exercice its activities more than 2 years and have to be approval by the judge.

The Extrajudicial Recuperation ("Recuperação Extrajudicial") is a private negotiation that involves creditors and debtors and, as the judicial recuperation, also have to be approved by Judiciary power.^[10]

Canada[link]

Bankruptcy in Canada is governed by the Bankruptcy and Insolvency Act and is applicable to businesses and individuals. The office of the Superintendent of Bankruptcy, a federal agency, is responsible for overseeing that bankruptcies are administered in a fair and orderly manner by all licensed Trustees in Canada. Trustees in bankruptcy actually administer the bankruptcy estates and are governed by the Bankruptcy and Insolvency Act of Canada.

Bankruptcy is filed when a person or a company becomes insolvent and cannot pay their debts as they become due and if they have at least $1,000 in debt.

Duties of trustees[link]

Some of the duties of the trustee in bankruptcy are to:

• Review the file for any fraudulent preferences or reviewable transactions
• Chair meetings of creditors
• Sell any non-exempt assets
• Object to the bankrupt's discharge
• Distribute funds to creditors

Creditors' meetings[link]

Creditors become involved by attending creditors' meetings. The trustee calls the first meeting of creditors for the following purposes:

• To consider the affairs of the bankrupt
• To affirm the appointment of the trustee or substitute another in place thereof
• To appoint inspectors
• To give such directions to the trustee as the creditors may see fit with reference to the administration of the estate.

Consumer proposals in Canada[link]

In Canada, a person can file a consumer proposal as an alternative to bankruptcy. A consumer proposal is a negotiated settlement between a debtor and their creditors.

A typical proposal would involve a debtor making monthly payments for a maximum of five years, with the funds distributed to their creditors. Even though most proposals call for payments of less than the full amount of the debt owing, in most cases, the creditors will accept the deal, because if they do not, the next alternative may be personal bankruptcy, where the creditors will get even less money. The creditors have 45 days to accept or reject the consumer proposal. Once the proposal is accepted by both the creditors and the Court, the debtor makes the payments to the Proposal Administrator each month (or as otherwise stipulated in their proposal), and the general creditors are prevented from taking any further legal or collection action. If the proposal is rejected, the debtor is returned to his prior insolvent state and may have no alternative but to declare personal bankruptcy.

A consumer proposal can only be made by a debtor with debts to a maximum of $250,000 (not including the mortgage on their principal residence). If debts are greater than $250,000, the proposal must be filed under Division 1 of Part III of the Bankruptcy and Insolvency Act. An Administrator is required in the Consumer Proposal, and a Trustee in the Division I Proposal (these are vertually the same although the terms are not interchangeable). A Proposal Administrator is almost always a licensed trustee in bankruptcy, although the Superintendent of Bankruptcy may appoint other people to serve as administrators.

In 2006, there were 98,450 personal insolvency filings in Canada: 79,218 bankruptcies and 19,232 consumer proposals.^[11]

China[link]

This section requires expansion.

Ireland[link]

Bankruptcy in Ireland applies only to natural persons.^[12] Other insolvency processes including liquidation and examinership are used to deal with corporate insolvency.

Irish bankruptcy law has been the subject of significant recent comment, from both government sources and the media, as being in need of reform. Part 7 of the Civil Law (Miscellaneous Provisions) Act 2011^[13] has started this process and the government has committed to further reform.

India[link]

India does not have a clear law on corporate bankruptcy even though individual bankruptcy laws have been in existence since 1874. The current law in force was enacted in 1920 called Provincial Insolvency Act.

Legal meaning of the terms bankruptcy, insolvency, liquidation and dissolution are contested in the Indian legal system. There is no regulation or statute legislated upon bankruptcy which denotes a condition of inability to meet a demand of a creditor as is common in many other jurisdictions.

Winding up of companies is in the jurisdiction of the Courts which can take a decade even after the Company has actually been declared insolvent. On the other hand, supervisory restructuring at the behest of the Board of Industrial and Financial Reconstruction is generally undertaken using receivership by a Public Finance Institution.

Japan[link]

See Dirty thirty (Japan)

The Netherlands[link]

The Dutch bankruptcy law is governed by the Dutch Bankruptcy Code ("Faillissementswet"). The code covers three separate legal proceedings. The first is the bankruptcy ("Faillissement"). The goal of the bankruptcy is the liquidation of the assets of the company. The bankruptcy applies to individuals and companies. The second legal proceeding in the Faillissementswet is the "Surseance". The Surseance only applies to companies. Its goal is to reach an agreement with the creditors of the company. The third proceeding is the "Schuldsanering". This proceeding is designed for individuals only.

Switzerland[link]

Bankruptcy according to Salvation Army, Switzerland.

Under Swiss law, bankruptcy can be a consequence of insolvency. It is a court-ordered form of debt enforcement proceedings that applies, in general, to registered commercial entities only. In a bankruptcy, all assets of the debtor are liquidated under the administration of the creditors, although the law provides for debt restructuring options similar to those under Chapter 11 of the U.S. Bankruptcy code.

Sweden[link]

In Sweden, bankruptcy (Swedish: konkurs) is a process that may involve a company or individual. A creditor or the company itself can apply for bankruptcy. An external bankruptcy manager will take over the company or the assets of the person, trying to sell as much as possible. A person or a company in bankruptcy can not access its assets (with some exceptions).

The formal bankruptcy process is rarely carried out for individuals.^[14] Creditors can claim money through the Enforcement Administration anyway, and creditors do not usually benefit from the bankruptcy of individuals because there are costs of a bankruptcy manager which has priority. Unpaid debts remain after bankruptcy for individuals. People who are deeply in debt can obtain a debt arrangement procedure (Swedish:skuldsanering). On application, they obtain a payment plan under which they pay as much as they can for five years, and then all remaining debts are cancelled. Debts that are derived from being subjected to a ban on business operations (issued by court, commonly for tax fraud and/or fraudulent business practices) or owed to a crime victim as compensation for damages are exempted from this and like before this process was introduced in 2006 will remain life-long.^[15] The most common reasons for personal insolvency in Sweden are illness, unemployment, divorce or company bankruptcy, not the reckless spending claimed by politicians and debt collection agencies when they describe the problem with deep personal debts.^[16]

United Kingdom[link]

In the United Kingdom, bankruptcy (in a strict legal sense) relates only to individuals (including sole proprietors) and partnerships. Companies and other corporations enter into differently-named legal insolvency procedures: liquidation and administration (administration order and administrative receivership). However, the term 'bankruptcy' is often used when referring to companies in the media and in general conversation. Bankruptcy in Scotland is referred to as sequestration. To apply for your own bankruptcy in Scotland you must have more than £1500 of debt.

A trustee in bankruptcy must be either an Official Receiver (a civil servant) or a licensed insolvency practitioner. Current law in England and Wales derives in large part from the Insolvency Act 1986. Following the introduction of the Enterprise Act 2002, a UK bankruptcy will now normally last no longer than 12 months and may be less, if the Official Receiver files in court a certificate that his investigations are complete. It was expected that the UK Government's liberalisation of the UK bankruptcy regime would increase the number of bankruptcy cases; the Insolvency Service statistics appear to bear this out:

After the increase in 2005 and 2006 the figures have remained stable.

Bankruptcy and pensions in the UK[link]

The UK bankruptcy law was changed in May 2000, effective May 29, 2000.^{[citation needed]} Debtors may now retain occupational pensions while in bankruptcy, except in rare cases.^{[citation needed]}

Proposed bankruptcy reform in the UK[link]

The Government are currently considering legislation to 'streamline' the bankruptcy process in the UK. Under the new proposals, struggling borrowers may be able to apply for bankruptcy without necessarily having to go to court, except where a disagreement exists between the debtor and their creditors.^[17]

United States[link]

Bankruptcy in the United States is a matter placed under Federal jurisdiction by the United States Constitution (in Article 1, Section 8, Clause 4), which allows Congress to enact "uniform laws on the subject of bankruptcies throughout the United States." The Congress has enacted statutes governing bankruptcy, primarily in the form of the Bankruptcy Code, located at Title 11 of the United States Code. Federal law is amplified by state law in some places where Federal law fails to speak or expressly defers to state law.

While bankruptcy cases are always filed in United States Bankruptcy Court (an adjunct to the U.S. District Courts), bankruptcy cases, particularly with respect to the validity of claims and exemptions, are often dependent upon State law. State law therefore plays a major role in many bankruptcy cases, and it is often not possible to generalise bankruptcy law across state lines.

Generally, a debtor declares bankruptcy to obtain relief from debt, and this is accomplished either through a discharge of the debt or through a restructuring of the debt. Generally, when a debtor files a voluntary petition, his or her bankruptcy case commences.

Chapters[link]

There are six types of bankruptcy under the Bankruptcy Code, located at Title 11 of the United States Code:

• Chapter 7: basic liquidation for individuals and businesses; also known as straight bankruptcy; it is the simplest and quickest form of bankruptcy available
• Chapter 9: municipal bankruptcy; a federal mechanism for the resolution of municipal debts
• Chapter 11: rehabilitation or reorganisation, used primarily by business debtors, but sometimes by individuals with substantial debts and assets; known as corporate bankruptcy, it is a form of corporate financial reorganisation which typically allows companies to continue to function while they follow debt repayment plans
• Chapter 12: rehabilitation for family farmers and fishermen;
• Chapter 13: rehabilitation with a payment plan for individuals with a regular source of income; enables individuals with regular income to develop a plan to repay all or part of their debts; also known as Wage Earner Bankruptcy
• Chapter 15: ancillary and other international cases; provides a mechanism for dealing with bankruptcy debtors and helps foreign debtors to clear debts.

The most common types of personal bankruptcy for individuals are Chapter 7 and Chapter 13. As much as 65% of all U.S. consumer bankruptcy filings are Chapter 7 cases. Corporations and other business forms file under Chapters 7 or 11.

In Chapter 7, a debtor surrenders his or her non-exempt property to a bankruptcy trustee who then liquidates the property and distributes the proceeds to the debtor's unsecured creditors. In exchange, the debtor is entitled to a discharge of some debt; however, the debtor will not be granted a discharge if he or she is guilty of certain types of inappropriate behavior (e.g. concealing records relating to financial condition) and certain debts (e.g. spousal and child support, student loans, some taxes) will not be discharged even though the debtor is generally discharged from his or her debt. Many individuals in financial distress own only exempt property (e.g. clothes, household goods, an older car) and will not have to surrender any property to the trustee. The amount of property that a debtor may exempt varies from state to state. Chapter 7 relief is available only once in any eight year period. Generally, the rights of secured creditors to their collateral continues even though their debt is discharged. For example, absent some arrangement by a debtor to surrender a car or "reaffirm" a debt, the creditor with a security interest in the debtor's car may repossess the car even if the debt to the creditor is discharged.

The 2005 amendments to the Bankruptcy Code introduced the "means test" for eligibility for chapter 7. An individual who fails the means test will have his or her chapter 7 case dismissed or may have to convert his or her case to a case under chapter 13.

Generally, a trustee will sell most of the debtor's assets to pay off creditors. However, certain assets of the debtor are protected to some extent. For example, Social Security payments, unemployment compensation, and limited values of equity in a home, car, or truck, household goods and appliances, trade tools, and books are protected. However, these exemptions vary from state to state.

In Chapter 13, the debtor retains ownership and possession of all of his or her assets, but must devote some portion of his or her future income to repaying creditors, generally over a period of three to five years. The amount of payment and the period of the repayment plan depend upon a variety of factors, including the value of the debtor's property and the amount of a debtor's income and expenses. Secured creditors may be entitled to greater payment than unsecured creditors.

Relief under Chapter 13 is available only to individuals with regular income whose debts do not exceed prescribed limits. If you are an individual or a sole proprietor, you are allowed to file for a Chapter 13 bankruptcy to repay all or part of your debts. Under this chapter, you can propose a repayment plan in which to pay your creditors over three to five years. If your monthly income is less than the state's median income, your plan will be for three years unless the court finds "just cause" to extend the plan for a longer period. If your monthly income is greater than your state's median income, the plan must generally be for five years. A plan cannot exceed the five-year limitation.

In contrast to Chapter 7, the debtor in Chapter 13 may keep all of his or her property, whether or not exempt. If the plan appears feasible and if the debtor complies with all the other requirements, the bankruptcy court will typically confirm the plan and the debtor and creditors will be bound by its terms. Creditors have no say in the formulation of the plan other than to object to the plan, if appropriate, on the grounds that it does not comply with one of the Code's statutory requirements. Generally, the payments are made to a trustee who in turn disburses the funds in accordance with the terms of the confirmed plan.

When the debtor completes payments pursuant to the terms of the plan, the court will formally grant the debtor a discharge of the debts provided for in the plan. However, if the debtor fails to make the agreed upon payments or fails to seek or gain court approval of a modified plan, a bankruptcy court will often dismiss the case on the motion of the trustee. Pursuant to the dismissal, creditors will typically resume pursuit of state law remedies to the extent a debt remains unpaid.

In Chapter 11, the debtor retains ownership and control of assets and is re-termed a debtor in possession ("DIP"). The debtor in possession runs the day to day operations of the business while creditors and the debtor work with the Bankruptcy Court in order to negotiate and complete a plan. Upon meeting certain requirements (e.g. fairness among creditors, priority of certain creditors) creditors are permitted to vote on the proposed plan. If a plan is confirmed the debtor will continue to operate and pay its debts under the terms of the confirmed plan. If a specified majority of creditors do not vote to confirm a plan, additional requirements may be imposed by the court in order to confirm the plan. Debtors filing for Chapter 11 protection a second time are known informally as "Chapter 22" filers.^[18]

Chapter 7 and Chapter 13 are the efficient bankruptcy chapters often used by most individuals. The chapters which almost always apply to consumer debtors are chapter 7, known as a "straight bankruptcy", and chapter 13, which involves an affordable plan of repayment. An important feature applicable to all types of bankruptcy filings is the automatic stay. The automatic stay means that the mere request for bankruptcy protection automatically stops and brings to a grinding halt most lawsuits, repossessions, foreclosures, evictions, garnishments, attachments, utility shut-offs, and debt collection activity.

Bankruptcy Exemptions[link]

A Bankruptcy Exemption defines the property a debtor may retain and preserve through bankruptcy. Certain real and personal property can be exempted on "Schedule C"^[19] of a debtors bankruptcy forms, and effectively be taken outside the debtor's bankruptcy estate. Bankruptcy Exemptions are available only to individuals filing bankruptcy.^[20] There are two alternative systems that can be used to "exempt" property from a bankruptcy estate, Federal Exemptions^[21] (available in some states but not all), and State Exemptions (which vary widely between states).

Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA)[link]

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8, 119 Stat. 23 (April 20, 2005) ("BAPCPA"), substantially amended the Bankruptcy Code. Many provisions of BAPCPA were forcefully advocated by consumer lenders and were just as forcefully opposed by many consumer advocates, bankruptcy academics, bankruptcy judges, and bankruptcy lawyers.^[22] The enactment of BAPCPA followed nearly eight years of debate in Congress. Most of the law's provisions became effective on October 17, 2005. Upon signing the bill, then President Bush stated:

Under the new law, Americans who have the ability to pay will be required to pay back at least a portion of their debts. Those who fall behind their state's median income will not be required to pay back their debts. The new law will also make it more difficult for serial filers to abuse the most generous bankruptcy protections. Debtors seeking to erase all debts will now have to wait eight years from their last bankruptcy before they can file again. The law will also allow us to clamp down on bankruptcy mills that make their money by advising abusers on how to game the system.^[23]

It was widely claimed by advocates of BAPCPA that its passage would reduce losses to creditors such as credit card companies, and that those creditors would then pass on the savings to other borrowers in the form of lower interest rates. These claims turned out to be false. After BAPCPA passed, although credit card company losses decreased, prices charged to customers increased, and credit card company profits soared.^[24]

Among its many changes to consumer bankruptcy law, BAPCPA enacted a "means test", which was intended to make it more difficult for a significant number of financially distressed individual debtors whose debts are primarily consumer debts to qualify for relief under Chapter 7 of the Bankruptcy Code. The "means test" is employed in cases where an individual with primarily consumer debts has more than the average annual income for a household of equivalent size, computed over a 180 day period prior to filing. If the individual must "take" the "means test", their average monthly income over this 180 day period is reduced by a series of allowances for living expenses and secured debt payments in a very complex calculation that may or may not accurately reflect that individual's actual monthly budget. If the results of the means test show no disposable income(or in some cases a very small amount) then the individual qualifies for Chapter 7 relief. If a debtor does not qualify for relief under Chapter 7 of the Bankruptcy Code, either because of the Means Test or because Chapter 7 does not provide a permanent solution to delinquent payments for secured debts, such as mortgages or vehicle loans, the debtor may still seek relief under Chapter 13 of the Code. A Chapter 13 plan often does not require repayment to general unsecured debts, such as credit cards or medical bills.

BAPCPA also requires individuals seeking bankruptcy relief to undertake credit counseling with approved counseling agencies prior to filing a bankruptcy petition and to undertake education in personal financial management from approved agencies prior to being granted a discharge of debts under either Chapter 7 or Chapter 13. Some studies of the operation of the credit counseling requirement suggest that it provides little benefit to debtors who receive the counseling because the only realistic option for many is to seek relief under the Bankruptcy Code.^{[citation needed]}

Europe in general[link]

This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (May 2007)

During 2004, the number of insolvencies reached all time highs in many European countries. In France, company insolvencies rose by more than 4%, in Austria by more than 10%, and in Greece by more than 20%. The increase in the number of insolvencies, however, does not indicate the total financial impact of insolvencies in each country because there is no indication of the size of each case. An increase in the number of bankruptcy cases does not necessarily entail an increase in bad debt write-off rates for the economy as a whole.

Bankruptcy statistics are also a trailing indicator. There is a time delay between financial difficulties and bankruptcy. In most cases, several months or even years pass between the financial problems and the start of bankruptcy proceedings. Legal, tax, and cultural issues may further distort bankruptcy figures, especially when comparing on an international basis. Two examples:

• In Austria, more than half of all potential bankruptcy proceedings in 2004 were not opened, due to insufficient funding.
• In Spain, it is not economically profitable to open insolvency/bankruptcy proceedings against certain types of businesses, and therefore the number of insolvencies is quite low. For comparison: In France, more than 40,000 insolvency proceedings were opened in 2004, but under 600 were opened in Spain. At the same time the average bad debt write-off rate in France was 1.3% compared to Spain with 2.6%.

The insolvency numbers for private individuals also do not show the whole picture. Only a fraction of heavily indebted households will decide to file for insolvency. Two of the main reasons for this are the stigma of declaring themselves insolvent and the potential business disadvantage.

See also[link]

• Bankruptcy alternatives
• Creditor's rights
• Debt consolidation
• Debt relief
• Debt restructuring
• Debtor in possession
• Default
• DIP Financing
• Distressed securities
• Financial distress
• Insolvency
• Judicial estoppel
• Liquidation
• List of business failures
• Sole Trader Insolvency (UK)
• Stalking Horse Agreement
• Tools of trade
• Turnaround ADR

References[link]

Further reading[link]

• Balleisen, Edward (2001). Navigating Failure: Bankruptcy and Commercial Society in Antebellum America. Chapel Hill: University of North Carolina Press. p. 322. ISBN 0-8078-2600-6. 
• DePamphilis, Donald M. (2009). Mergers, Acquisitions, and Other Restructurings, 5th Edition. Elsevier, Academic Press. ISBN 978-0-12-374878-2. 
• Sandage, Scott A. (2006). Born Losers: A History of Failure in America. Cambridge, Mass.: Harvard University Press. ISBN 0-674-02107-X. 

External links[link]

Wikiquote has a collection of quotations related to: Bankruptcy

Wikisource has the text of the 1911 Encyclopædia Britannica article Bankruptcy.

• U.S. Federal Bankruptcy Courts
• Official U.S. Bankruptcy Statistics
• US Courts Bankruptcy Law
• Executive Office for United States Bankruptcy Trustees
• Cornell Bankruptcy Laws
• National Association of Consumer Bankruptcy Attorneys
• Bankruptcy Research Database (WebBRD)
• Website of the Insolvency Service in the UK
• Bankruptcy Statistics in Hong Kong

Modest Mouse
Background information
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Labels	Epic, Up, K, Matador
Associated acts	Dirty Dozen Brass Band, Seasick Steve, Ugly Casanova, The Smiths, The Cribs, The Flaming Lips, The Shins, Built to Spill, Grandaddy, The Helio Sequence, Zeus Jimenez, Big Boi, Mister Heavenly, Satisfact
Website	www.modestmousemusic.com
Members
Isaac Brock Eric Judy Jeremiah Green Joe Plummer Tom Peloso Jim Fairchild
Past members
Robin Peringer John Wickhart Dann Gallucci Benjamin Weikel Johnny Marr

Modest Mouse is an American indie rock band based in Portland, Oregon.^[1][2] They were formed in 1993 in Issaquah, Washington, by singer/lyricist/guitarist Isaac Brock, drummer Jeremiah Green, and bassist Eric Judy. Since their 1996 debut album, This Is a Long Drive for Someone with Nothing to Think About, their lineup has centered around Brock, Green and Judy. Guitarist Johnny Marr (formerly of The Smiths) joined the band in May 2006, along with percussionist Joe Plummer (formerly of the Black Heart Procession) and multi-instrumentalist Tom Peloso, to work on the album We Were Dead Before the Ship Even Sank. Guitarist Jim Fairchild joined the band in February 2009. Their name is derived from a passage from the Virginia Woolf story "The Mark on the Wall" which reads, "I wish I could hit upon a pleasant track of thought, a track indirectly reflecting credit upon myself, for those are the pleasantest thoughts, and very frequent even in the minds of modest, mouse-coloured people, who believe genuinely that they dislike to hear their own praises."^[3]

History[link]

Formation and early years: 1994-1999[link]

In 1994, Isaac Brock, Jeremiah Green, Eric Judy and John Wickhart recorded their first EP, Blue Cadet-3, Do You Connect?, at Calvin Johnson's Dub Narcotic Studios. It was released by K Records. A single, "Broke", followed under Sub Pop that was recorded by Steve Wold (now better known as bluesman Seasick Steve) at Moon Studios. During this time, Modest Mouse also recorded what would have been their first album, Sad Sappy Sucker, but constant delays caused the album to be shelved and forgotten. It was not until 2001 that it was officially released. Until making waves in the pop music world in 2004, many of their tours included stops at DIY/punk venues.

After moving to Up Records,^[4] Modest Mouse released two full-length albums and other recordings recorded at Moon Studios, including the 1996 LP This Is a Long Drive for Someone with Nothing to Think About. This album was produced and recorded by Steve Wold (at the time Wold was assisting in the recordings as well, but was not officially part of the band). The next offering was Interstate 8, also produced by Wold. The 1997 album, The Lonesome Crowded West, (also recorded at Moon Studios, by Scott Swayze) turned out to serve as the band's breakthrough. The Lonesome Crowded West gained the band a cult following, and is now popularly considered to be one of the defining albums of mid-1990s indie rock. Prior to its release, the band had recorded the EP The Fruit That Ate Itself. In 1999, Up Records released a singles and rarities collection entitled Building Nothing Out of Something, which included the entirety of Interstate 8 except for the songs "Edit the Sad Parts" and "Buttons to Push the Buttons".

Critical success: 2000-2002[link]

In 2000, Modest Mouse released The Moon & Antarctica, their first album on Epic Records. Due in large part to a broken jaw Brock suffered a few months prior, the album ended up being more instrumental than their previous works. Not knowing if he would be able to sing, Brock focused on making a more instrumental and experimental album.^[5] The band enjoyed some success on alternative radio with the singles "3rd Planet" and "Gravity Rides Everything." The album was critically well-received^[6] including a 9.8 out of 10 score from online music magazine, Pitchfork Media.^[7] It has subsequently gone on to receive further acclaim.^[8] Brock has since released an album with his side project Ugly Casanova on Sub Pop, which was the only side project allowed due to the contract. The band licensed "Gravity Rides Everything" for a commercial for Nissan's Quest minivan, a move that Brock has publicly acknowledged as blatantly commercial but necessary to achieve financial stability. Regarding the commercial, Brock stated, "People who don't play music for a living can criticize my morals while they live off their parents' money or wash dishes for some asshole."^[9]

In 2001, Modest Mouse released the EP Everywhere and His Nasty Parlour Tricks, a collection of unused songs from the recording sessions of The Moon and Antarctica. In 2002, they joined Cake, De La Soul, The Flaming Lips, The Hackensaw Boys and Kinky on the Unlimited Sunshine Tour.

Mainstream success and line-up changes: 2003-2009[link]

In March 2003, Green left the band after suffering a nervous breakdown;^[10] the official word was that he was leaving to work with his side project, Vells. The same year, he and bass guitarist Eric Judy appeared on Adam Forkner's first solo album, VVRSSNN. Green was replaced by two new members, drummer Benjamin Weikel (who also drummed for The Helio Sequence, as well as playing keyboard) and guitarist Dann Gallucci (who had been a member of Modest Mouse previously, and appears on Sad Sappy Sucker and The Lonesome Crowded West). On April 6, 2004, Modest Mouse released their fourth album, the platinum-selling Good News for People Who Love Bad News, which had two hits with "Float On" and "Ocean Breathes Salty" (both of which they performed on Saturday Night Live on November 13, 2004^[11]). The album was nominated for a Grammy for Best Alternative Rock Album that year. Later that year, Green returned to the band, and Weikel returned to drumming exclusively for The Helio Sequence. Gallucci left the band in August.

In May 2006, Dann Gallucci (who had left the band amicably in September 2004) was replaced on guitar by Johnny Marr, former guitarist for The Smiths. Their next album, We Were Dead Before the Ship Even Sank, was released on March 20, 2007^[12] after being delayed from December 19, 2006. It was the first Modest Mouse album to reach number one on the US Billboard 200 charts, and had the hit single "Dashboard", as well as "Missed the Boat" and "We've Got Everything". Modest Mouse released singles for the songs "Satellite Skin", "Autumn Beds" and "Perpetual Motion Machine" in limited editions (a run of 4,000 each) vinyl 7 inches, featuring artwork by art director and illustrator Joshua Marc Levy, J.Alex Stamos, and Natasha Wheat.

The band began a North American tour in June 2008. The band returned to Florida for the first time since their November 2006 Bang Music Festival show where they were cut off stage early, with three shows in Miami, Orlando and St. Augustine.^[13] While an update on the Modest Mouse blog was subtitled catching up on some words for the next tour, it is in fact the lyrics to Heart Cooks Brain.^[14] Modest Mouse finished their tour supporting We Were Dead after two years of promoting the record.

Jim Fairchild of Grandaddy and All Smiles replaced Marr as guitarist, when Marr left the band after joining The Cribs, beginning with the support of No One's First and You're Next, which was released on August 4, 2009,^[15] composed of unreleased tracks from the recording sessions of Good News for People Who Love Bad News and We Were Dead Before the Ship Even Sank.^[16]

Recent years: 2010-present[link]

In 2010 The Moon & Antarctica was re-released on vinyl for the first time in ten years as part of Record Store Day.^[17]

On July 4, 2010 the band headlined the second day of the 80/35 Music Festival in Des Moines, Iowa, ^[18] and the first day of the End Of The Road Festival in Dorset, England, on September 10, 2010.^[19] At the end of August 2010, Modest Mouse played on the main stage at the Leeds and Reading festivals.

On April 28, 2011, Big Boi said via Twitter that he had been in the studio with Modest Mouse working with them on their next LP.^[20] On May 29th Modest Mouse played two new songs during their headline of the Sasquatch festival. The songs were called "Poison the Well" and "Lampshades on Fire".^[21] They then contributed a cover of the Buddy Holly song "That'll Be The Day" to the compilation Rave On Buddy Holly, which was released on June 28, 2011. Recently Modest Mouse had played at Splendour in the Grass in Woodford, Queensland on July 29th, 2011,^[22] and The Warfield in San Francisco on January 25th, 2012.

According to e-mails sent from Glacial Pace which responded to fans confused about the large gaps between albums, Modest Mouse is indeed currently writing and recording material and have been for quite some time. But despite this, the e-mail also reminds fans that the fact that Isaac named his record label "Glacial Pace" was not an accident. Thus, it remains unclear when Modest Mouse will finally release their next album.

Members[link]

Current

• Isaac Brock – lead vocals, guitars, banjo, ukulele (1993–present)
• Eric Judy – bass guitar, Acoustic Guitar (1993–present)
• Jeremiah Green– drums, percussion (1993–2003, 2004–present)
• Joe Plummer – drums, percussion (2004–present)
• Tom Peloso – guitars, upright bass, keyboards, fiddle, horns (2004–present)

Touring members

• Jim Fairchild – guitars, vocals (2005, 2009–present)
• Robin Peringer – guitar (2000–2003)

Former

• John Wickhart – bass guitar (1994–1995)
• Dann Gallucci – guitars (1997–1998, 2003–2004)
• Benjamin Weikel – drums (2003–2004)
• Johnny Marr – guitars, vocals (2006–2009)^[23]

Discography[link]

• This Is a Long Drive for Someone with Nothing to Think About (1996)
• The Lonesome Crowded West (1997)
• The Moon & Antarctica (2000)
• Good News for People Who Love Bad News (2004)
• We Were Dead Before the Ship Even Sank (2007)

References[link]

No One's First and You're Next Release Date: Sat, 08/01/2009

External links[link]

Wikiquote has a collection of quotations related to: Modest Mouse

• Official Modest Mouse website
• Epic Records' Modest Mouse site
• Modest Mouse on Myspace
• Modest Mouse at Virb
• Modest Mouse at Allmusic

James Franco
Franco in October 2011
Born	James Edward Franco (1978-04-19) April 19, 1978 (age 34) Palo Alto, California, U.S.
Alma mater	University of California, Los Angeles
Occupation	Actor, artist, and filmmaker
Years active	1997–present

James Edward Franco (born April 19, 1978) is an American actor. His first prominent role was a lead part on the short-lived cult hit television program Freaks and Geeks; he later achieved recognition for playing the titular character in the TV biographical film James Dean (2001), for which he was awarded a Golden Globe Award. He achieved international fame with his portrayals of Harry Osborn in Sam Raimi's Spider-Man trilogy.

Franco has won or been nominated for a number of awards. He has done both dramatic and comedic work in projects and has appeared in an eclectic range of films since the 2000s, ranging from period to contemporary pieces, and from major Hollywood productions to less publicized indie films, as well as fantasy films to biopics and soap operas. Other notable films include Pineapple Express, a 2008 stoner comedy that earned him his second Golden Globes nomination; the 2008 Harvey Milk-biopic Milk; and Danny Boyle's 2010 drama film 127 Hours, about real-life mountain climber Aron Ralston's struggle to free his hand from a boulder. His performance in 127 Hours earned him nominations for many high-profile awards, including the Academy Awards, Golden Globe and Screen Actors Guild Awards. In 2011, he starred opposite Andy Serkis in Rupert Wyatt's successful science fiction film Rise of the Planet of the Apes, a reboot of the Planet of the Apes franchise. Since 2009, he has played a recurring role in the ABC daytime soap opera General Hospital.

Franco has hosted Saturday Night Live twice, as well as the 83rd Academy Awards with Anne Hathaway. He volunteers for the Art of Elysium charity. Franco currently teaches a class at New York University about transferring poetry to film.^[1]

Early life and family[link]

Nicknamed "Ted," James Edward Franco was born in Palo Alto, California. His mother, Betsy Lou (née Verne), is a poet, author, and editor, and his father, Douglas Eugene "Doug" Franco (1948–2011),^[2] ran a non-profit agency and a shipping container security company. The two met as students at Stanford University.^[3][4][5] Franco's father was of Portuguese (from the Madeira island) and Swedish descent;^[6] Franco's mother is Jewish, a descendant of immigrants from Russia (her family's surname had been changed from "Verovitz" to "Verne").^[7][8] His paternal grandmother, Marjorie (Peterson) Franco, is a published author of young adult books;^[5][9] his maternal grandmother, Mitzie (Levine) Verne, owns the Verne Art Gallery, a prominent art gallery in Cleveland, and was an active member in the National Council of Jewish Women.^[10][11][12]

Franco's family upbringing was "academic, liberal and largely secular."^[13] He grew up in California with his two younger brothers, Tom and Dave ("Davy"), the latter of whom is also an actor.^[14] Talented at mathematics, Franco interned at Lockheed Martin.^[3] Franco was often encouraged by his father to get good grades and did well on his SATs.^[13] He graduated from Palo Alto High School in 1996, where he acted in plays.^[3][15] In his high school years, Franco was arrested for underage drinking, graffiti, and for being a part of a group that stole designer fragrances from department stores and sold them to classmates.^[16] These arrests led to him briefly becoming a ward of the state. Facing the possibility of juvenile hall, Franco was given a second chance by the judge.^[6] "It was teen angst. I was uncomfortable in my own skin. I was shy. I changed my ways just in time to get good grades," he recalled of his troubles with the law.^[13]

Although the idea of becoming a marine zoologist interested him, Franco had always secretly wanted to become an actor but feared rejection.^[6] He enrolled at the University of California, Los Angeles (UCLA) as an English major,^[17] but dropped out after his freshman year against his parents' wishes^[3] to pursue a career as an actor, since he would have to have waited two years to audition for their acting program.^[6] Franco instead chose to take acting lessons with Robert Carnegie at the Playhouse West.^[15] Around this time, Franco took up a late-night job at McDonald's to support himself since his parents refused to do so. He was a vegetarian until working there.^[16] While working at the establishment, for his acting classes, he would practice accents on customers.^[6] Knowing that the aspiring actor was doing his best to follow his passion, Carnegie told Franco to pay him what he could and later on pay him back.^[6]

Acting career[link]

Early work[link]

After 15 months of training he began auditioning in Los Angeles, and started professionally acting in 1997 with guest roles on television shows. His first break came in 1999, after he was cast in a leading role on the short-lived but well-reviewed television series Freaks and Geeks.^[18] The program, which ran for 18 episodes and was canceled due to low viewership, later became a cult hit among audiences.^[19] He has since described the series as "one of the most fun" work experiences that he has had.^[20] In another interview, Franco said: "When we were doing Freaks and Geeks, I didn’t quite understand how movies and TV worked, and I would improvise even if the camera wasn’t on me ... So I was improvising a little bit back then, but not in a productive way."^[21] Franco made his film debut in a brief role in the 1999 Drew Barrymore-starring Never Been Kissed and his first major movie was the romantic teen comedy Whatever It Takes (2000), in which he played popular jock Chris. The latter is a modern day remake of the 1897 play Cyrano de Bergerac.^[22][23]

He was subsequently cast as the title role in director Mark Rydell's 2001 TV biographical film James Dean.^[24][25] To immerse himself in the role, Franco went from being a non-smoker to smoking two packs of cigarettes a day, dyed his dark brown hair blond, and learned to ride a motorcycle as well as play guitar and the bongos.^[24] To have a greater understanding of Dean, Franco spent hours with two of Dean's associates. Other research included reading books on Dean and studying his movies.^[24] While filming James Dean, the actor, to get into character, cut off communication with his family and friends, as well as his then-girlfriend. "It was a very lonely existence," he notes. "If I wasn't on a set, I was watching James Dean. That was my whole thinking. James Dean. James Dean."^[24] Despite already being a fan of Dean, Franco feared he might be typecast if he'd captured the actor too convincingly. Ken Tucker of Entertainment Weekly wrote: "Franco could have walked through the role and done a passable Dean, but instead gets under the skin of this insecure, rootless young man."^[26] He received a Golden Globe Award and nominations for an Emmy Award and a Screen Actors Guild Award (SAG).^[27][28][29]

2002–2007[link]

Franco achieved worldwide fame and attention in the 2002 superhero film Spider-Man, when he played Harry Osborn, the son of the villainous Green Goblin (Willem Dafoe) and best friend of the title character (Tobey Maguire). Originally, Franco was considered for the lead role of Spider-Man/Peter Parker in the film,^[30] though the lead went to Maguire. Todd McCarthy of Variety noted that there are "good moments" between Maguire and Franco in the film.^[31] Spider-Man was a commercial and critical success.^[32] The movie grossed $114 million during its opening weekend in North America and went on to earn $822 million worldwide.^[33] He next starred in Sonny, a 2002 release in which he was directed by fellow actor Nicolas Cage. It was Cage's involvement that had attracted Franco to the film.^[34] Set in 1980s New Orleans, Sonny follows the titular character (Franco) returning home after just being discharged from the Army. To prepare for his role, he met with sex workers or people who had previously been prostitutes.^[34] The movie was panned by critics, with the New York Posts Lou Lumenick calling it an "instant candidate for worst movie of the year."^[35] Franco was cast as a homeless drug addict in the drama City by the Sea (2002) after co-star Robert De Niro saw a snippet of his work in James Dean.^[24] He lived on the streets for several days to better understand the subject of the matter^[36] as well as talk to former or still using drug addicts.^[34] Both projects were released in September.

Franco at the Spider-Man 3 premiere, April 2007

Following City by the Sea, he co-starred alongside Neve Campbell in Robert Altman's ballet movie The Company (2003).^[13] The success of the first Spider-Man film led Franco to reprise the role in the 2004 sequel, Spider-Man 2. The movie was well received by critics,^[32] and it proved to be a big financial success, setting a new opening weekend box office record for North America.^[37] With revenue of $783 million worldwide, it became the second highest grossing film in 2004.^[33] The following year he made and starred in the black comedy The Ape^[13] and the 2005 war film The Great Raid, in which he portrayed Robert Prince, a captain in the United States Army's elite Sixth Ranger Battalion. In 2006, Franco co-starred with Tyrese Gibson in Annapolis and played legendary hero Tristan in Tristan & Isolde, a period piece dramatization of the Tristan and Iseult story also starring British actress Sophia Myles. For the former, he did eight months of boxing training and for the latter, he practiced horseback riding and sword fighting.^[38] He then completed training for his Private Pilot Licence in preparation for his role in Flyboys,^[16] which was released in September 2006; the same month, Franco appeared briefly in The Wicker Man, the remake of the seminal horror film. Also in 2006, he made a cameo appearance in the romantic comedy The Holiday.^[25]

He again played Harry Osborn in Spider-Man 3 (2007). In contrast to the previous two films' positive reviews, Spider-Man 3 was met with a mixed reception by critics.^[32] Nonetheless, with a total worldwide gross of $891 million, it stands as the most successful film in the series, and Franco's highest grossing film to date.^[33] In this same year, Franco made a cameo appearance as himself in the Apatow-directed comedy Knocked Up, which starred Freaks and Geeks alumni Seth Rogen, Jason Segel and Martin Starr.^[16] Franco co-starred with Sienna Miller in the low-budget independent films Camille, a dark fantasy dramedy about a young newly wed couple and Interview, where he appears in a voice only role, both 2007 movies that were ignored by audiences and critics alike. Among his other 2007 projects were Good Time Max, which Franco wrote, directed and starred in. The movie premiered at the 2007 Tribeca Film Festival and centers around two talented brothers who take very diverse paths in life, one going on to become a doctor whilst the other sibling (Franco) experiences unemployment and uses drugs. The actor chose to cast himself in that role because, "It was really just a process of elimination. I was better suited for this role than the responsible surgeon."^[39]