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The Ninth Circuit may be backing off from Ybarra, a case that waives discharge for attorneys’ fees if the debtor ‘returns to the fray.’
Appeals court had sympathy for the debtor by disallowing part but not all of a judgment for receipt of a fraudulent transfer with ‘actual intent.’
Appeals court says that using a trust for future asbestos claims rather than a bar order would be cheaper and avoid unnecessary litigation.
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