Eighteenth century ‘history and tradition’ might govern the constitutionality of real estate tax foreclosures where the government retains sale proceeds in excess of unpaid taxes.
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A secured lender who doesn’t file a claim doesn’t get paid by the chapter 13 plan and keeps its lien, but can’t reclaim the collateral during the life of the plan.
It appears as though the Supreme Court will decide Lac du Flambeau based entirely on textual analysis of Section 106(a), which does not explicitly abrogate sovereign immunity as to Native American tribes.
In Section 522(b)(3), Congress made sure that ‘retirement funds’ are exempt in bankruptcy even if they aren’t exempt in states that don’t permit federal exemptions.