PROBLEMS ON CLEANUP COST CLAIMS IN BANKRUPTCY CASE

Abstract

The polluter must be responsible for the damages from pollution disseminated from his premises including the cost incurred by the government in cleaning up the pollution. However, when those who must be responsible for the cleanup cost going bankrupt, the government may get repaid from their estate in a small portion, as an ordinary unsecured creditor, though, the cleanup increases the value of the property and protects public from pollution. Ultimately, tax from innocent people bear the burden of cleanup cost which is against the polluter pays principle, therefore, the cleanup cost claims should get more protection in bankruptcy cases.