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Chapter 11

2008

SelectedWorks

Rahul K. Sharma

Articles 1 - 1 of 1

Full-Text Articles in Law

The Doctrine Of Necessity In Bankruptcy Reorganizations, Rahul K. Sharma Apr 2008

The Doctrine Of Necessity In Bankruptcy Reorganizations, Rahul K. Sharma

Rahul K. Sharma

Necessity is an old concept used in many fields of law. In criminal law and torts, it is a defense. In property law, its reasoning is used to support eminent domain. This paper will analyze the use of the doctrine of necessity in bankruptcy reorganizations. In bankruptcy, necessity has also been used as a justification for paying certain creditors earlier than they would have otherwise been paid. This has become controversial as such payments became routine. A decision by the Seventh Circuit in the 2004 Kmart case strongly criticized such payments and criticized reliance upon the doctrine of necessity. This ...