The Environmental Liabilities of a Bankruptcy Estate

The conflict between the bankruptcy creditors and the environmental responsibilities of a bankruptcy estate is discussed globally. The creditors' receivables are usually included in the protection of property rights regulated by Constitution. On the other hand, one can ask whether the bankruptcy estate is breaking the law as an operator by refusing to abolish the harmful environmental pollution. The bankruptcy estate is deemed to be an operator when it has the legal and factual possibility of taking the necessary environmental actions. Accordingly, the costs of the environmental measures taken by authorities instead of the bankruptcy estate must be paid with a super priority from the assets of the bankruptcy estate. Instead, the question concerning the priority status of private environmental damages is a political matter. The argumentation presented in the article may contribute new legislation concerning the environmental liabilities of bankruptcy estates. Copyright © 2017 INSOL International and John Wiley & Sons, Ltd.