A long shot provision in President Donald Trump’s budget bill raises questions about whether proposed court limits would apply to enforcing contempt citations in bankruptcy cases.
The measure, part of the president’s “big beautiful bill,” would bar federal courts from holding a party in contempt for failing to comply with an injunction or temporary restraining order unless the party seeking the order provides a security bond. But the broad language doesn’t account for a bankruptcy rule that explicitly exempts certain parties from posting security.
Because the measure would apply retroactively, it could affect pending bankruptcy proceedings.
This article was originally published by Bloomberg Law.
Angélica Serrano Román 