Robert M. Lawless - College of Law

Lawless speaks to New York Times about Spirit Airlines shutdown

After struggling financially for years and failing to secure a government bailout, Spirit Airlines announced that it would begin the process of shutting down in early May. Investors were strongly opposed to the government bailout, especially those that had made Spirit debtor-in-possession loans. Such loans have high interest rates, and the investors who own them are paid back before other creditors. The investors also have the right to object to changes, including new loans, that could hurt their interests.

Speaking to the New York Times, bankruptcy expert and professor Bob Lawless compared the rights of these lenders to an oft-cited metaphor of hikers standing on a hill. “The new lender says, ‘We’re on this mountain trail, and there’s plenty of room for you to go out and stand out there closer to the edge of the cliff,’” Lawless said. “And the existing lender has a good response, which is that if there’s so much room, why don’t you go stand out there?”

Read the full story at nytimes.com.

Lawless quoted in Bloomberg on arbitration’s rising role in bankruptcy disputes

As consumer bankruptcy filings continue to rise, the role of arbitration has also increased. Because the Federal Arbitration Act and the US bankruptcy code can be at odds with each other and that tension has not yet been tested by the Supreme Court, experts expect that the matter will eventually make its way there.

Professor and bankruptcy expert Bob Lawless, who has written a paper on arbitration and bankruptcy, says that unless amended or repealed, courts should follow both statutes.

Speaking to Bloomberg, he said, “You’ve got to look and say, ‘For this matter in this arbitration agreement, is this subject to arbitration, and does the arbitral demand conflict with a command in the bankruptcy code?’”

Read the full story in Bloomberg.

6 faculty present research and provide commentary at St. Louis University Colloquium on Law, Behavioral Science, and Social Science

Professors Jennifer Robbennolt, Kenworthey Bilz, Arden Rowell, Verity Winship, and Bob Lawless pose for a group photo during a colloquium at St. Louis University.

The College of Law was well-represented at the recent St. Louis University Colloquium on Law, Behavioral Science, and Social Science. Professor Jennifer Robbennolt presented a work-in-progress called “’The Rule of Law’ Silo” that is co-authored by Professors Verity Winship and Colleen Murphy. The paper presents the results of a survey to understand what people understand the phrase “the rule of law” to mean.

Professor Arden Rowell presented a paper called “Why Behavior?” The paper develops a model to systematize how different scholarly traditions approach the question of why law & behavior matters.

Professor Bob Lawless and recent graduate Emily Woo ’25 presented a paper that they co-authored with Jennifer Robbennolt and Angela Koo ’25, entitled “Who Gets the Last Word? Interruptions and Floor Control on the Supreme Court.” The paper, forthcoming in the University of Illinois Law Review, began as Emily and Angela’s class project for Empirical Methods. Using data scraped from transcripts of Supreme Court oral arguments, the paper reinforces past findings about gendered patterns of interruptions between the justices and also builds a more complex story by focusing on which justices retain floor control after being interrupted.

Finally, Professors Kenworthey Bilz, Lesley Wexler, and Verity Winship were commentators for papers at the colloquium.

Brubaker and Lawless add commentary to ABI post on Texas Two-Step bankruptcies

Professors Ralph Brubaker and Robert Lawless were both featured in the commentary featured on the American Bankruptcy Institute’s blog, Rochelle’s Daily Wire. Their commentary discussed the most recent decision in the ongoing controversy over the propriety and legitimacy of so-called “Texas Two-Step” mass-tort bankruptcies. The decision, from the Fourth Circuit, continues to stoke opinion and Lawless writes that it sets up “a Supreme Court decision in the coming years.”

Read their commentary in Rochelle’s Daily Wire.

Lawless joins Ballard Spahr Consumer Finance Monitor Podcast to discuss consumer debt and bankruptcy through the lens of his latest book

Professor Bob Lawless and co-authors Pamela Foohey and Deborah Thorne recently joined the well-regarded Ballard Spahr podcast Consumer Finance Monitor to discuss their book “Debt’s Grip: Risk and Consumer Bankruptcy.”

In the episode, they discuss why people actually file for bankruptcy, the role of debt collection and litigation, potential policy reforms, and much more.

Listen to the episode.

Lawless discusses bankruptcy, the student debt crisis, and more on The UIUC Talkshow

An audio recording studio with microphone and chair

Leading bankruptcy law expert and professor Bob Lawless recently sat down with the students behind the independent, student-run production The UIUC Talkshow. Lawless discussed the student debt crisis, the history of bankruptcy law, and some proposed solutions.

View the full conversation on youtube.com.

Lawless and co-authors discuss their book “Debt’s Grip: Risk and Consumer Bankruptcy” in 2-part series with Law360

Professor Robert Lawless, along with co-authors Pamela Foohey and Deborah Thorne, recently sat down with Law360 for an in-depth interview on their book “Debt’s Grip: Risk and Consumer Bankruptcy.” The book is the latest to come out of the Consumer Bankruptcy Project, a long-term interdisciplinary research project on consumer bankruptcies in the U.S. that began in 1981. The authors discussed what they were hoping to learn (and what surprised them), how the data on who is filing for bankruptcy has changed over time, and what they want lawmakers to take away from the book.

Read Part 1 and Part 2 of the interview.

Lawless discusses new book with WBGL

Speaking about his new book, “Debt’s Grip,” Professor Robert Lawless sat down with WBGL’s Community Matters program. He discussed the research that went into the work, how bankruptcy affects the lives of everyday Americans, and common misconceptions about the bankruptcy process. He concluded with advice for how to support those going through financial hardships.

Listen to the program on Soundcloud.

Anderson and Lawless write about crypto and retirement for Bloomberg

The sun rises over the Illini Union. The Illini Union, which was dedicated in 1941, serves students and the campus in many ways, including housing the Illini Union Hotel, a credit union, a convenience store, information services, CITES (Campus IT) instructional facility, quick-service restaurants, a bowling alley and arcade, student performance spaces, and office space for Registered Student Organizations, student government, Student Legal Services, Student Tenant Union, LGBT Resource Center, and Union administration.

In a new opinion article published by Bloomberg, Professors Sean Anderson and Robert Lawless explain why they believe the Trump administration’s decision to allow workers to invest retirement savings in cryptocurrency and private equity is a bad decision for the workers. “There is no reason to expect that inviting plans to offer these alternative investments will lead to better outcomes overall for participants—especially considering the higher fees and expenses that typically come with them,” they write. “But there is ample reason to think these investment options will make things worse by increasing the risk of large losses for participants, most of whom can ill afford them.”

Read their full editorial.

Lawless discusses new book with Illinois News Bureau

In his new book, Debt’s Grip: Risk and Consumer Bankruptcy, Professor Robert Lawless and co-authors Pamela Foohey and Deborah Thorne examine the stories and the data behind people who file for bankruptcy in the U.S., finding the human nuance in the bankruptcy system. “When we thought about writing this book, we asked ourselves, ‘What do we have from the data that we think people would want to read?’” Lawless told the Illinois News Burea. “We also wanted to write a book that had a broader reach, so we realized that we had to show both the data and the personal stories of the people who show up in bankruptcy court.”