Sovereign Immunity

“The King can do no wrong.” The legal doctrine that protects a governmental entity from being sued. In bankruptcy, Congress has recognized that if governmental units were afforded full immunity from reorganization proceedings, the core bankruptcy function of restructuring debtor-creditor relations could not be fully accomplished, and therefore Congress has specified sections of the Code tha are to be given effect notwithstanding the otherwise applicable sovereign immunity of governmental units.

Bankruptcy Code § 106.

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