The notion that everyone gets his or her proverbial day in court is commonly accepted in our society. Like anything else, however, the notion has its exceptions. One particular exception is now playing a significant role in several large bankruptcy cases: bar orders.
A bar order is generally a creature of bankruptcy. In its simplest form, it is entered by the court and enjoins a non-debtor litigant from pursuing its claim against a non-debtor litigation target. Although the facts that result in a bar order vary from case to case, a good, recent example can be seen in the ongoing Palm Beach Finance Partners bankruptcy cases.
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