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Attempting to balance the rules of the U.S. Bankruptcy Code with the policy of ensuring that tort victims receive timely compensation, courts have struggled with the bankruptcy court's jurisdiction over liability insurance policy proceeds. If insurance proceeds are "property of the bankruptcy estate," they are subject not only to the automatic stay, but also potentially to claims of all of the estate's creditors.
January 09, 2002 at 12:00 AM
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The original version of this story was published on Law.Com
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