Harmonizing a Debtor’s Right to File for Bankruptcy Against a Creditor’s Desire to Protect Its Financial Interests

How to harmonize a debtor’s right to file against a creditor’s desire to protect its financial interests in that debtor has sparked a number of different judicial opinions.

8 minute read March 01, 2025 at 12:11 AM

Francis J. Lawall and Hanna J. Redd

Harmonizing a Debtor’s Right to File for Bankruptcy Against a Creditor’s Desire to Protect Its Financial Interests

In the United States, a debtor’s ability to seek a fresh financial start through bankruptcy is constitutionally protected. Therefore, courts routinely invalidate restrictions designed to limit a debtor’s ability to file a voluntary bankruptcy petition as void against public policy.

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