San Diego Law Review
Document Type
Comments
Abstract
This Comment examines the use of motions for substantive consolidation or to amend the caption as a means to consolidate the assets of a non-debtor with those of a debtor. The author examines two conflicting bankruptcy court decisions, one of which permitted such consolidation, thus making the non-debtor an involuntary debtor via a summary proceeding, without providing statutory protections normally afforded involuntary debtors, and another which refused to permit consolidation of non-debtor and debtor assets and liabilities. The author discusses the constitutional and statutory protections which apply to non-debtors in these circumstances, as well as the procedural safeguards that exist beyond those afforded by bankruptcy motion practice and, in conclusion, questions the use of these motions.
Recommended Citation
Jeanne MacKinnon,
Substantive Consolidation: The Back Door to Involuntary Bankruptcy,
23
San Diego L. Rev.
203
(1986).
Available at:
https://digital.sandiego.edu/sdlr/vol23/iss1/8