Bankruptcy Reform Act of 1978

1) Link to the Text of the Act
Read the statute (11 U.S.C. § 101 et seq.)

2) Why It Was Done
The Act overhauled federal bankruptcy law, replacing the Bankruptcy Act of 1898 with the modern Bankruptcy Code, designed to balance debtor relief with creditor protections.

3) Pre-existing Law or Constitutional Rights
The U.S. Constitution (Article I, Section 8) gives Congress power over bankruptcy, but laws before 1978 were fragmented. The old system was criticized as outdated and inconsistent.

Harrington v. Purdue Pharma (2024)

1) Link to the Actual Opinion
Read the Supreme Court opinion (PDF)

2) Summary of the Opinion
Purdue Pharma filed for bankruptcy to resolve thousands of lawsuits over its role in the opioid epidemic. The plan released members of the Sackler family (who owned Purdue but were not themselves debtors) from liability in exchange for a multibillion-dollar contribution. The Supreme Court ruled that the Bankruptcy Code does not authorize non-consensual third-party releases like the one shielding the Sacklers.