The ‘police and regulatory’ exception to the automatic stay applies when the FTC is only seeking injunctive and equitable relief, the D.C. Circuit says.
Neither a contract nor state law requiring exhaustion of administrative remedies can divest the bankruptcy court of ‘core’ jurisdiction, even after plan confirmation.
Bankruptcy Judge Gunn from D.C. sides with the majority to hold that “personal injury” does not require physical injury but may include reputational harm.
Bankruptcy Judge Gunn found the power to revoke a small business designation and proceed under ‘traditional’ chapter11 in lieu of dismissing or converting to chapter 7.