Employers are constrained by dozens of rules and regulations limiting their hiring criteria. In today’s economy, one question that often arises is whether employers may refuse to hire bankrupt job applicants. Surprisingly, the answer for private employers may be yes.
USA, Employment & Labor, Insolvency & Restructuring, Litigation, ArentFox Schiff, Credit history, Bankruptcy, Debtor, Discrimination, Economy, Credit score, Eleventh Circuit
On June 16, 2008, the United States Supreme Court held that the stamp-tax exemption under 11 U.S.C. § 1146(a) does not apply to transfers made before confirmation of a Chapter 11 plan. This decision will impact the structuring of asset sales in Chapter 11 cases where the transfers involve significant stamp taxes or similar taxes. Full text of the opinion.
USA, Insolvency & Restructuring, Litigation, Tax, Bricker & Eckler LLP, Tax exemption, Unsecured debt, Stamp duty, Majority opinion, US Code, Supreme Court of the United States, Eleventh Circuit