Chicken Little Comes to Roost in Bankruptcy

Why Section 362(b)(28) Doesn't Mean the Sky Is Falling
By Samuel R. Maizel, Sam Maizel
25 ABI Journal 22 (Jul/Aug 2006)
August 2006

This article discusses a change made to Bankruptcy Code section 362 by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 ("BAPCPA").  The BAPCPA amendment added 362(b)(28), which provides that the automatic stay does not stay acts by the federal Secretary of Health and Human Services to exclude debtors from participation in the Medicare program or any other federal health care program.

Reprint with permission of the American Bankruptcy Institute.