05.28.10

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United States v. Apex Oil Co.: The Seventh Circuit Holds that RCRA Provides Remedies that Cannot Be Discharged in Bankruptcy

May 28, 2010 Newsletter (PDF)

Courts have long struggled with the issue of whether a debtor’s liability for the remediation of contaminated property is a debt that can be discharged in bankruptcy. In a relatively recent case, United States v. Apex Oil Co., 579 F.3d 734 (7th Cir. 2009), the Seventh Circuit provided more clarity on the issue of whether an obligation to comply with a cleanup order under the Resource Conservation and Recovery Act (“RCRA”) is a “claim” that can be discharged in bankruptcy.