Tenth Circuit insinuates that a debtor may have a nondischargeable debt even if the debtor did not personally benefit from fraud.
The Supreme Court now has two bankruptcy cases on the calendar for argument in the term to begin in October.
Both individuals and corporations in subchapter V of chapter 11 are barred from discharging debts that are nondischargeable under Section 523(a).
The decision by the Supreme Court next term in Bartenwerfer will tell us whether debts can be automatically nondischargeable, even when the debtor is without fault.