Bloomberg Law
Jan. 13, 2023, 10:23 PM

Tribal Sovereign Immunity in Bankruptcy Gets Supreme Court Hearing

James Nani
James Nani

The US Supreme Court will examine whether the bankruptcy code stripped a Native American tribe and its subsidiary of its sovereign immunity not to be subject to a court’s authority.

The order issued Friday by the justices grants a request from the Lac Du Flambeau Band of Lake Superior Chippewa Indians to consider whether its subsidiary was allowed to go after money owed by an individual after he filed for Chapter 13.

The case “presents a question of utmost importance to Indian tribes,” the band said in its request to the court. Although the bankruptcy code repeals the sovereign immunity ...

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