Karrie L. Bercik, JD, LLM

The Challenge to the Commission

The bankruptcy laws curtail the force and operation of every part of our law and jurisprudence. They impair the obligation of contract. They limit the jurisdiction of duly constituted courts. They divest individuals and entities of their property. They deny shareholders the right to corporate governance by directors of their own choosing. If they also sometimes restrict the right of government to collect taxes, it is because there is a compelling public interest in fair treatment of creditors and the rehabilitation of financially troubled debtors. We do not take lightly the political or economic imperative of assuring a free flow of revenues to the government or of preventing unscrupulous debtors from passing on their fiscal obligations to the taxpaying public at large.

The proposals suggested herein are designed to preserve the government's tax priority, foster the rehabilitation of debtors, treat all creditors fairly and create substantive tax rules that are not at odds with those purposes. They reflect our view that reform must have as its objective making the bankruptcy system work, rather than punishing wrongdoers.

Questions, comments or suggestions? kbercik@taxcounsellor.com

Last updated March 30, 1998

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