Civil Division
Bankruptcy Litigation
The United States becomes involved in bankruptcy cases when an individual, corporation, or partnership who owes money to the United States files for protection under the bankruptcy laws of the United States.
As the attorney for a creditor in a bankruptcy proceeding, the Civil Division seeks to protect the United States' interest in the debtor's estate by defending against objections to the proof of claim filed by the United States and by objecting to confirmation of the debtor's plan of reorganization. The Civil Division also defends against actions to discharge taxes, determine tax liability, avoid liens, sell property free and clear of federal liens or mortgages, turnover of property, and enjoin certain actions by the United States. At times, the United States seeks to have the automatic stay lifted, or to have certain cases dismissed or converted to Chapter 7. Our work, however, is different from that of the U.S. Trustee.
Most of the office's bankruptcy cases involve the Internal Revenue Service and the U.S. Department of Education, although the Civil Division has also pursued cases on behalf of the U.S. Army Corps of Engineers, the U.S. Department of Health and Human Services and the U.S. Department of Labor.