Call for a free bankruptcy consultation

Louisville |


New Albany |

Schwartz Bankruptcy Law Center

Radioactive dumping penalties lead to bankruptcy filings

A Chapter 7 bankruptcy can have many purposes, including the avoidance or reduction of administrative fines and penalties. A recent filing by two companies and their owner based in West Liberty demonstrates how a Chapter 7 filing can be used to avoid paying significant fines rather than merely eliminate operating debt.

In November 2016, the Kentucky Department of Public Health assessed fines against two firms and their owner for illegally dumping radioactive waste from another state in landfills in Estill and Greenup counties. Evidence at the hearing showed that the illegal dumping began in May 2015, with the transport and disposal of "technologically enhanced naturally occurring radioactive material," known by the acronym TENORM. One of the companies did business under the name Advanced TENORM Services, LLC. The state assessed a total of $5.3 million in penalties against the two companies.

The unspoken purpose of the bankruptcy is the automatic stay under 11 U.S.C. ยง 362 and stop the administrative proceedings before the state can collect the penalties. The bankruptcy court is in the process of assembling the debtors' banking records for the last six months before the petitions were filed and appointing a trustee.

The trustee will be responsible for gathering the assets of the two companies and their owner, selling the assets and using the proceeds of the sale to pay the claims of creditors. When this process is completed, the court will order the companies' remaining debts to be discharged.

Whether the administrative penalties can be discharged remains to be determined. Chapter 7 does not allow discharge of debts obtained through fraud. Whether the companies committed fraud during the illegal dumping will be a crucial issue in the bankruptcy case.

Source: Lexington Herald-Leader, "Companies that dumped radioactive waste in Estill and Greenup counties file for bankruptcy," Greg Kocher, March 13, 2017

No Comments

Leave a comment
Comment Information
Make A Payment Email Us For a Response

Need A Solution To Your Debt Problems?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

Make A Payment
Schwartz Bankruptcy Law Center

Office Locations:

Louisville Office
3339 Taylorsville Road
Louisville, KY 40205

Phone: 502-785-8549
Phone: 502-485-9200
Fax: 502-485-9220
Louisville Law Office Map

New Albany Office
501 State Street
New Albany, Indiana 47150

Phone: 502-785-8549
Phone: 812-945-9200
Fax: 502-485-9220
Map & Directions