American Hardwoods, Inc. v. Deutsche Credit Corp

In American Hardwoods, Inc. v. Deutsche Credit Corp. (In re American Hardwoods, Inc.), 885 F.2d 621, 626 (9th Cir.1989), the Court explicitly rejected the argument--advanced by Lowenschuss today--that the general equitable powers bestowed upon the bankruptcy court by 11 U.S.C. Sec. 105(a) permit the bankruptcy court to discharge the liabilities of non-debtors. Noting that "section 105 does not authorize relief inconsistent with more specific law," the Court concluded "the specific provisions of section 524 displace the court's equitable powers under section 105 to order the permanent relief against a non-debtor sought by the debtor." Id. at 625-26.