Dates: Oct. 13-15, 2025
Location: The Adolphus, Dallas, Texas
 

Master the Fight, Win the Case with the American Bankruptcy Litigation Institute, NACBA’s premier training program designed to sharpen your litigation skills and give you the competitive edge in bankruptcy practice.

 

This intensive, hands-on program equips consumer bankruptcy attorneys with the tools and strategies needed to effectively litigate against creditors, servicers and debt collectors. Whether you're looking to refine your trial techniques, strengthen your case strategies or gain deeper insights into bankruptcy litigation, this is the training you’ve been waiting for.

 

The American Bankruptcy Litigation Institute will officially launch at NACBA’s Members-Only Fall Workshop, taking place Oct. 13-15 in Dallas, Texas. This exclusive event will offer a dynamic learning experience led by top experts in the field, providing practical insights and real-world litigation tactics you can immediately apply to your practice.

 

Graduates of this program will receive a certificate of completion for the year and a digital badge to showcase your achievement on your email signature and practice’s website. Don’t miss this opportunity to elevate your litigation skills, expand your professional network and gain the recognition you deserve. Secure your spot today and get in on the ground floor. NACBA is working to bring you even more from ABLI like:

● Specialty Webinars
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● Access to the experts
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You must be a member to attend NACBA's Members-Only Fall Workshop and participate in the ABLI programming. If you cannot make it to the Workshop, we will have the recording and materials available to purchase soon.

Holding:
The Court held that the waiver of sovereign immunity in §106(a) of the Bankruptcy Code applies only to a §544(b) claim itself, and not to state-law causes of action invoked under that federal claim.

Facts:
The bankruptcy trustee of a failed Utah-based business sued the United States to recover $145,000 in misappropriated funds under §544(b) of the Bankruptcy Code. The funds were taken by the business's shareholders to satisfy their personal federal tax liabilities. The trustee relied on Utah's fraudulent transfer statute as the applicable law to support his §544(b) claim, but the Government argued that sovereign immunity would bar the action.

Analysis:
The Court's analysis focused on the interaction between §106(a) and §544(b) of the Bankruptcy Code. Section 106(a) waives sovereign immunity in certain bankruptcy provisions, including §544, but the Court determined that this waiver does not extend to state-law claims embedded in a federal bankruptcy claim. The trustee's reliance on Utah's fraudulent transfer statute as the basis for his §544(b) claim was incompatible with §106(a), which does not allow for the creation of new substantive rights. Sovereign immunity serves as a jurisdictional bar, not a tool for expanding the trustee's avoidance powers, and the Court emphasized the need to interpret waivers of sovereign immunity narrowly. Additionally, the text of §106(a) includes provisions such as §106(a)(5), which states that the waiver does not create new causes of action, reinforcing that the waiver of immunity does not affect the requirements of §544(b). The Court also rejected the trustee’s argument that the phrase “with respect to” in §106(a)(1) could extend the immunity waiver to state-law claims nested within a federal claim, citing the statutory context and historical understanding of sovereign immunity waivers.

Tips:
● Independent State Law Claims: When invoking §544(b) in fraudulent transfer actions, ensure that the underlying state-law claim can stand independently, as §106(a)'s waiver of sovereign immunity does not extend to state causes of action.

● Understanding the Limits of Trustee Powers: Debtors' attorneys should recognize that a trustee's power to avoid fraudulent transfers under §544(b) may be limited if the Government is involved, as sovereign immunity could bar such actions.

The National Consumer Bankruptcy Rights Center (NCBRC) is a 501(c)(3) organization dedicated to protecting the integrity of the bankruptcy system and preserving the rights of consumer bankruptcy debtors. NCBRC provides assistance either by working directly with debtors’ attorneys or by filing amicus briefs in courts throughout the country. Consider supporting NCBRC today!

For over 30 years, NACBA has led advocacy, education and professional growth for consumer bankruptcy attorneys. Our Mentorship Program strengthens this community by fostering meaningful connections that build confidence and success.
 
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