General Discharge Barred Suing the Debtor to Collect a Nondischargeable Debt
The Eleventh Circuit narrowed its Jet Florida rule that allowed suing a discharged debtor as nominal defendant.
Statement of Profitability Must Be in Writing to Underpin a Nondischargeability Claim
A statement about the profitability of a corporation the debtor owns is a statement about the debtor’s own financial condition, the Fifth Circuit says.
Eleventh Circuit Reads Husky Narrowly, Perhaps Too Narrowly
Reading Husky narrowly, the Eleventh Circuit requires that fraud occur before a debt arises to make the debt nondischargeable under Section 523(a)(2)(A).
Fifth Circuit Cites ‘Clearly Erroneous’ Findings to Declare a Debt Nondischargeable
Circuit says it’s easy to show reasonable reliance on a false financial statement.
Ninth Circuit Creates a Legal Fiction to Uphold Recovery of an Unauthorized Transfer
Ninth Circuit assumed that transferred property must remain property of the estate after conversion from ‘13’ to ‘7’ before the chapter 7 trustee can avoid an unauthorized transfer under Section 549.
Lawyer for Madoff Customer Slapped with $57,347 Discovery Sanction
Calling the Madoff trustee a liar and basing a discovery motion on facts known to be false resulted in sanctions under Rule 37(a)(5)(B).
Silence in the Face of a Duty to Disclose Is Not a ‘Statement,’ 9th Cir. BAP Holds
The Ninth Circuit BAP closed a loophole that would have allowed a recipient of public assistance benefits to discharge a debt for overpayment.
Fifth Circuit’s Seminal Reed Decision Not Followed in Chapter 13
Bankruptcy judge finds no statutory power for a chapter 13 trustee to prosecute a lawsuit that the debtor was judicially estopped for pursuing.