1st Circ. Doubts Tribe Is Immune From Bankruptcy Stay

By Brian Dowling (October 7, 2021, 4:31 PM EDT) -- A First Circuit judge pushed back Thursday on the argument that Native American tribes are exempt from the federal law barring suits against debtors once they file for bankruptcy.

During oral arguments, U.S. Circuit Judge Sandra L. Lynch cast doubt on a lower court's finding that a Wisconsin tribe's payday lending business is immune from $173,000 in claims for allegedly hounding a Boston man for repayment after he sought Chapter 13 bankruptcy protection.

Brian W. Coughlin's appeal argued that Congress took away tribes' sovereign immunity in the Bankruptcy Code when it listed "domestic" governments as within the law's reach. The tribe...

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