PACA Doesn’t Give Rise to Denial of Discharge for Defalcation, Chicago Judge Says
A PACA trust lacks the hallmarks of a trust, so a failure to pay a produce supplier doesn’t give rise to a nondischargeable debt for defalcation while acting in a fiduciary capacity, Judge Goldgar says.
Personal Liability for a PACA Trust Is Dischargeable, Judge Mark Says
Courts are split on whether personal liability to produce suppliers results in a nondischargeable debt under Section 523(a)(4).
Chapter 12 Eligibility Requirements Construed Liberally in Favor of the Debtor
Unfiled claims aren’t included in calculation of total debt for chapter 12 eligibility.