Equitable Powers

SECTION 105(a)–Equitable powers of the Bankruptcy Court

In re Excel Innovations, Inc., 502 F.3d 1086 (9th Cir. 2007), cert. denied, 128 S.Ct. 2080, 170

L.Ed.2d 816 (2008)

Distinguishing Crown Vantage, infra, the court held that “our usual preliminary injunction

standard applies to applications to stay actions against non-debtors under § 105(a). In granting or

denying such an injunction, a bankruptcy court must consider whether the debtor has a reasonable

likelihood of a successful reorganization, the relative hardship of the parties, and any public

interest concerns if relevant.”

In re Crown Vantage, Inc., 421 F.3d 963, 975 (9th Cir. 2005)

“The only requirement for the issuance of an injunction under § 105 is that the remedy

conform to the objectives of the bankruptcy code.” The standard for issuing a preliminary

injunction does not apply to injunctions issued under § 105.

In re Beaty, 306 F.3d 915,922 (9th Cir. 2002)

“[A] bankruptcy court is a court of equity and should invoke equitable principles and

doctrines, refusing to do so only where their application would be inconsistent with the

Bankruptcy Code.”

In re Yadidi, 274 B.R. 843 (9th Cir. B.A.P. 2002)

Section 105 does not provide an independent ground for denying debtor’s discharge.

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