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U.S. Supreme Court Clarifies Limits of Bankruptcy Judge's Equitable Authority Under Section 105(A)

by Mark D. Bloom
Greenberg Traurig, LLP - Miami Office

Michael H. Moody
Greenberg Traurig, LLP - Tallahassee Office

March 14, 2014

Previously published on March 2014

On March 4, 2014, a unanimous United States Supreme Court decided Law v. Siegel and clarified that exercising statutory or inherent powers, a bankruptcy court may not contravene specific statutory authority. Lawwill likely have broad implications for business bankruptcy cases even though it directly involved the exercise of a bankruptcy judge’s authority under section 105(a) to create a pragmatic solution to the actions of a bad actor in a consumer bankruptcy case.


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