Ever since the enactment of the Bankruptcy Code decades ago, bankruptcy courts have had to address the threshold question of whether the debtor should be allowed to utilize the provisions of the Bankruptcy Code.
Evolution of Pre-Bankruptcy Planning Raises Questions of Good Faith
In recent years, as extensive pre-bankruptcy planning has evolved, bankruptcy filings frequently involve affiliates of larger companies, engineered with a structuring of liabilities in mind. The question of whether these targeted filings are for a legitimate bankruptcy purpose or should be dismissed has been the subject of significant high-profile litigation.

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