Toibb v. Radloff
United States Supreme Court
501 U.S. 157 (1991)
- Written by Philip Glass, JD
Facts
Sheldon Baruch Toibb (plaintiff), an individual nonbusiness debtor, filed a voluntary petition for relief pursuant to Chapter 7 of the Bankruptcy Code on November 18, 1986. On discovering the value of some stock, Toibb sought reorganization under 11 U.S.C. § 1101 et seq. (Chapter 11 of the Bankruptcy Code). The bankruptcy court ordered Toibb to provide a basis for his Chapter 11 eligibility. The court dismissed Toibb’s petition for Chapter 11 relief on August 1, 1988, ruling that Toibb’s individual nonbusiness status rendered him ineligible for Chapter 11 relief. Both the district court and the court of appeals affirmed. The court of appeals’ amicus curiae argued that congressional reports showed an intent to exclude individual nonbusiness debtors in 11 U.S.C. § 109, that provisions of 11 U.S.C. § 109 applied solely to business debtors, that an individual’s recourse to Chapter 11 would harm creditors and prove impracticable, and that forced bankruptcy proceedings could result. The Supreme Court granted certiorari.
Rule of Law
Issue
Holding and Reasoning (Blackmun, J.)
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