The U.S. Supreme Court unanimously decided Law v. Siegel[1] on March 4 and clarified that in exercising statutory or inherent powers, a bankruptcy court may not contravene specific statutory authority. Law will likely have broad implications for business bankruptcy cases although it directly involves 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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