Doing Equity in Bankruptcy

This intriguing Article by Professor Daniel J. Bussel argues that in some cases a non-debtor's right to specific relief should be treated as a 'claim,' monetized, given pro rata treatment and discharged. Notwithstanding this idea and the text of the Bankruptcy Code, many courts have concluded that an injunction or other equitable remedy is not a 'claim' unless the court's decree can be satisfied by the payment of money under nonbankruptcy law. This Article argues that consistent with the Code's text and policy, injunctions or other forms of equitable relief should be presumptively treated as 'claims,' even if nonbankruptcy law does not permit the enjoined party to satisfy the injunction by the payment of money. A balancing approach is then analyzed with seven factors introduced for courts to weigh when considering granting equitable relief claims in bankruptcy.