In 1981, the Sixth Circuit Court of Appeals issued its decision in In Re: Mansfield Tire and Rubber Company, which continues to be good law and stands for the principle that the administration of workers' compensation claims by a state agency are a valid exercise of the government's police or regulatory powers and, therefore, were exempt from the automatic stay provisions of the bankruptcy code, 11 U.S.C. §362.
Cordero v. State Auto Sales, Inc.
Compensation Review Board
November 26, 2012