- 11 U.S.C.
In re Reams
Sep
22
2005
Ruling
Debtors were denied sanctions motion against the government since the government's delay in payment to the debtor tobacco farmers was brief and not made in bad faith and since the government had not attempted to collect a debt in violation of the automatic stay.
Procedural posture
Bankruptcy debtors asserted that the United States government unreasonably and wrongfully delayed payment to the debtors, as tobacco farmers, under a Tobacco Transition Payment Program ("TTPP"). The debtors contended that the delay caused additional interest to accrue on loans the debtors otherwise would have paid under their confirmed chapter 12 plan, and the debtors moved for sanctions against the government.
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Court
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