105 Injunction

The last (and often the first) refuge of a scoundrel (usually, but not always, the debtor).

A bankruptcy court order issued under the allegedly broad powers conferred on the bankruptcy court by Section 105 authorizing the issuance of “any order, process, or judgment that is necessary or appropriate to carry out the provisions of” the Code. Section 105 is cited by debtors and other proponents of a proposed action to justify anything and everything including, for example, critical vendor orders and the grant of injunctions against actions by a lender against guarantors or other co-obligors including occasionally, to a lender’s horror, permanent injunctions imposed by a debtor’s Chapter 11 plan.

Synonym: Magic Dust.

Bankruptcy Code § 105.

Email Term