Summary

Portrait of Antonin Scalia Antonin Scalia Hoffman v. Connecticut Department Of Income Maintenance…

By allowing a trustee to recapture payments made to creditors 90 days before a bankruptcy petition is filed, the preference provision prevents anxious creditors from grabbing payments from an insolvent debtor and hence getting more than their fair share. After today, however, any State owed money by a debtor with financial problems will have a strong incentive to collect whatever it can, as fast as it can, even if doing so pushes the debtor into bankruptcy. Ordinary creditors will soon realize that States can receive more than their fair share
Source: Wikisource

Portrait of Antonin Scalia Antonin Scalia Hoffman v. Connecticut Department Of Income Maintenance…

The plurality justifies this conclusion by accepting an analog to the use of the word "determine" in a Code provision dealing with taxes, § 505 (a) (1) , while rejecting an equally compelling analogy to the use of the word "determine" in the Code's jurisdictional provision, 28 U.S.C. § 157 (b) (1) (1982 ed., Supp. V) . But instead of trying to force meaning into the word "determination" through competing analogies to other Code provisions, we should give decisive weight to the explicit language abrogating sovereign immunity.
Source: Wikisource

Portrait of Antonin Scalia Antonin Scalia Hoffman v. Connecticut Department Of Income Maintenance…

There is no question that § 106 (c) effects a waiver of sovereign immunity. The statute, which applies to the Federal Government, the States, and municipalities alike, see 11 U.S.C. § 101 (21) , states in the clearest possible terms that provisions of the Code using any of the trigger words apply to governmental units "notwithstanding any assertion of sovereign immunity," and the legislative history supports that reading. It is well settled that when the Federal Government waives its sovereign immunity, the scope of that waiver is construed liberally to effect its remedial purposes.
Source: Wikisource

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