NCJ Number
126452
Journal
Tulsa Law Journal Volume: 15 Dated: (Spring 1990) Pages: 617-637
Date Published
1990
Length
21 pages
Annotation
Forfeiture laws, both State and Federal, are vital weapons in the nation's fight against drugs. Consequently, bankruptcy courts should carefully circumspect what course to take when presented with a case which involves a civil forfeiture proceeding.
Abstract
Even assuming that a bankruptcy petition is filed in good faith, the bankruptcy court should suspend its proceedings under 11 U.S.C. s 305, either upon motion of the government or "sua sponte." The suspension would allow the district court to proceed to determine outcome of the forfeiture case, thereby properly defining what assets remain in the debtor's estate. Another approach would allow the government to move the district court to withdraw its referral to the bankruptcy court pursuant to 28 U.S.C. s 157(d) and to resolve the issues in both the bankruptcy case and the forfeiture case. It is essential that the forfeiture issues be addressed prior to any determination of the extent of the bankrupt debtor's estate. In order to insure that the bankruptcy forum is not abused, forfeiture proceedings must be separate and detached from the bankruptcy proceeding. 146 notes