Substantive consolidation in bankruptcy cases should only be used sparingly.

May 3, 2011

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51 BankruptcyResort to substantive consolidation should not be Pavlovian, but should be used only sparingly, with a heightened degree of due process and due consideration for harm or economic prejudice that such a remedy would occasion.
In re Wheeler, 2011 WL 597025 (Bankr. D. Idaho Feb. 11, 2011)

Suggested by Barbara Bozonie, West Principal Attorney Editor