May 2019
A divided panel of the Sixth Circuit holds that Section 106 does not waive sovereign immunity for Indian tribes.
Courts are divided when an exemption claim collides with the government’s right of setoff.
A bankruptcy court’s in rem jurisdiction overrides a claim of sovereign immunity.
‘Exhaustion’ is not required before compelling the IRS to return funds taken in violation of discharge.
Sovereign immunity protects a tribe even after successful veil piercing.