What happens when a party seeks the protection of the bankruptcy courts from costs and expenses related to environmental obligations? In such cases, the goals of environmental law and bankruptcy law are clearly in conflict and courts have had difficulty determining which environmental obligations are dischargeable in bankruptcy.
One thing that is clear, however, is that the answer lies primarily in bankruptcy law. That is, an injunction requiring remediation of soil or groundwater is dischargeable if it is a “claim” as that term is defined in §101(5)(b) of the Bankruptcy Code. 11 U.S.C. §101(5)(b).
