The tide is turning against corporate Sub V debtors. Two bankruptcy judges now side with two circuits in holding that debts of corporate debtors can be nondischargeable.
The Ninth Circuit BAP rebelled against the Supreme Court’s departure from the statute in Kelly v. Robinson on dischargeability under Section 523(a)(7).
The federal appeals court brushed aside technicalities under state criminal law in deciding that an order for restitution was not discharged under Section 1328(a)(3).
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