In re Miles (04-42238)

The United States Trustee brought this motion because the Debtors are residents of Alabama. The Debtors opposed the motion and argued that the U.S. Trustee program is unconstitutional because it does not apply in all fifty states and is therefore not a uniform law respecting bankruptcy. The Federal Courts Improvement Act allowed Alabama and North Carolina to opt out of the U.S. Trustee Program. The court determined that the debtors did not meet the heavy burden to invalidate the Act. Further, the Debtors did not show they would be harmed by having their case administered under the Bankruptcy Administrator Program rather than the U.S. Trustee Program, and therefore lacked standing to challenge the Act.

Friday, June 24, 2005