Rochelle's Daily Wire

The Third Circuit lauded Bankruptcy Judge Craig Goldblatt for a ‘well-reasoned’ opinion correctly interpreting Supreme Court authority.

Bankruptcy Judge Klinette H. Kindred declined to expand Bartenwerfer by imputing fraud or larceny when the debtor wasn’t a partner or agent.

Disputing the Fourth Circuit line by line and raising the possibility of a circuit split, the BAP and six bankruptcy courts have held that there’s no such thing as nondischargeability for corporate Sub V debtors.

At least where nondebtor releases are prohibited, and if Delaware law controls, a suit against an alter ego doesn’t violate the discharge injunction, the Ninth Circuit BAP says.

A transferor’s fraudulent intent isn’t imputed to the transferee to make the transferee’s debt nondischargeable for ‘actual fraud.’

An election for having a tax refund applied to the following year’s taxes can result in the loss of discharge.

Contrary to the Fourth Circuit, five bankruptcy courts have now held there’s no such thing as nondischargeability for corporate Sub V debtors. The question is now before the Fifth Circuit.

In the Alex Jones corporate Subchapter V case, Bankruptcy Judge Christopher Lopez said that the later chapter 11 filing by Jones himself, with about $1.5 billion in debt, didn’t kick the corporate debtor out of Subchapter V and into ‘ordinary’ chapter 11.

The opinion by Justice Barrett largely bases the outcome on the use of the passive voice in Section 523(a)(2)(A).

To avoid automatic nondischargeability, the debtor in the settlement of a fraud suit must deny liability.