Bankruptcy Court Can Even Subordinate a 502(h) Claim

Bankruptcy Court Can Even Subordinate a 502(h) Claim

In its decision, the court maintained that the equitable powers of bankruptcy courts were sufficiently broad to subordinate a claim (even a claim that arose under 502(h)) on equitable grounds under Section 510(c) and that there is nothing in the Bankruptcy Code that prevents a court from so doing.