A Northern District of New York bankruptcy judge has refused to bail out Congress for an apparent drafting glitch in the new bankruptcy law that frequently results in creditors getting less under the “reform” measure than they got under the old version — even though the clear intent of lawmakers and the president was to aid creditors.
Chief Bankruptcy Judge Stephen D. Gerling in In re Rotunda, 06-60054, broke with the majority of his colleagues who have considered the same issue and said that if Congress is determined to replace judicial discretion with formulaic mandates, it can deal with the seemingly absurd results.
