July 12, 2023

Bartenwerfer Doesn’t Apply if the Debtor Isn’t a Partner or Agent, Bankruptcy Judge Says

Bankruptcy Judge Klinette H. Kindred declined to expand Bartenwerfer by imputing fraud or larceny when the debtor wasn’t a partner or agent.

4th Circuit, Virginia, Virginia Eastern District

July 11, 2023

Ninth Circuit BAP Holds that Debts of Corporate Sub V Debtors Can’t Be Nondischargeable

Disputing the Fourth Circuit line by line and raising the possibility of a circuit split, the BAP and six bankruptcy courts have held that there’s no such thing as nondischargeability for corporate Sub V debtors.

9th Circuit

June 19, 2023

An Alter Ego Suit Doesn’t Violate the Discharge Injunction, BAP Says

At least where nondebtor releases are prohibited, and if Delaware law controls, a suit against an alter ego doesn’t violate the discharge injunction, the Ninth Circuit BAP says.

9th Circuit

June 07, 2023

Bartenwerfer Isn’t at Odds with Husky, According to Bankruptcy Judge Margaret Mann

A transferor’s fraudulent intent isn’t imputed to the transferee to make the transferee’s debt nondischargeable for ‘actual fraud.’

9th Circuit, California, California Southern District

May 09, 2023

Aggressive Bankruptcy Planning Results in Loss of Discharge

An election for having a tax refund applied to the following year’s taxes can result in the loss of discharge.

6th Circuit, Michigan, Michigan Eastern District

April 20, 2023

Another Court Holds that Debts of Corporate Sub V Debtors Can’t Be Nondischargeable

Contrary to the Fourth Circuit, five bankruptcy courts have now held there’s no such thing as nondischargeability for corporate Sub V debtors. The question is now before the Fifth Circuit.

11th Circuit, Florida, Florida Middle District

April 07, 2023

Later Developments Don’t Undo Subchapter V Eligibility, Houston Judge Says

In the Alex Jones corporate Subchapter V case, Bankruptcy Judge Christopher Lopez said that the later chapter 11 filing by Jones himself, with about $1.5 billion in debt, didn’t kick the corporate debtor out of Subchapter V and into ‘ordinary’ chapter 11.

5th Circuit, Texas, Texas Southern District

February 23, 2023

Debts for a Partner’s Fraud Are Still Nondischargeable, the Supreme Court Says

The opinion by Justice Barrett largely bases the outcome on the use of the passive voice in Section 523(a)(2)(A).

Supreme Court

February 10, 2023

Sometimes, a Settlement with No Admission of Liability Can Be Nondischargeable

To avoid automatic nondischargeability, the debtor in the settlement of a fraud suit must deny liability.

5th Circuit, Texas, Texas Eastern District

February 06, 2023

Stay Violator Held Liable for Debtor’s Attorneys’ Fees Incurred to Collect Damages

When a stay violator refused to reimburse debtor’s counsel for fees to stop the stay violation, Judge Rebecca Connelly awarded attorneys’ fees for time spent to collect attorneys’ fees.

4th Circuit, West Virginia