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Abstract: The U.S. Supreme Court recently decided United States v. Miller, a case addressing the interplay between sovereign immunity and a bankruptcy trustee's avoiding powers. The Bankruptcy Code contains a sovereign immunity waiver, which the Court interpreted narrowly, allowing the U.S. government to raise the defense when a bankruptcy trustee sought to claw back a fraudulent transfer using state law. Though somewhat complex and technical, the Court's decision has significant implications for the bankruptcy policy of equality of distribution among similarly situated creditors and therefore is a must-read for any bankruptcy practitioner.
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