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Defense Costs Against a Debtor Attorney are Appropriately Nondischargeable Say Narrow Majority of Respondents in Latest ABI Poll

Contact: John Hartgen
             (703) 739-0800
             jhartgen@abiworld.org

 

DEFENSE COSTS AGAINST A DEBTOR ATTORNEY ARE APPROPRIATELY NONDISCHARGEABLE, SAY NARROW MAJORITY OF RESPONDENTS IN LATEST ABI POLL

August 11, 2006, Alexandria, Va. — The results of a recent American Bankruptcy Institute online poll showed that respondents were nearly polarized over the question of whether a damages claim for defense costs against a debtor attorney arising from sanctions under Rule 11 and 28 USC 1927 is appropriately nondischargeable under §523(a)(6). Twenty-five percent “agreed strongly,” while 26 percent “disagreed strongly.”

An additional 19 percent of respondents “agreed somewhat” that a damages claim for defense costs against a debtor attorney arising from sanctions under Rule 11 and 28 USC 1927 is appropriately nondischargeable under §523(a)(6), while 12 percent “disagreed somewhat.” Eighteen percent of the respondents did not know or had no opinion on the issue.

ABI membership and members of the public were welcome to submit their response to the statement: “A damages claim for defense costs against a debtor attorney arising from sanctions under Rule 11 and 28 USC 1927 is appropriately nondischargeable under §523(a)(6).” The latest ABI Quick Poll was open to the public for voting from Aug. 3-10.

ABI’s weekly Quick Poll is posted on ABI’s home page, www.abiworld.org. ABI members and the public are invited to respond to a question on a timely bankruptcy or insolvency issue. Visit http://www.abiworld.net/quickpoll/ to access the results of previous ABI Quick Polls.

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ABI is the largest multi-disciplinary, nonpartisan organization dedicated to research and education on matters related to insolvency. ABI was founded in 1982 to provide Congress and the public with unbiased analysis of bankruptcy issues. The ABI membership includes more than 11,500 attorneys, accountants, bankers, judges, professors, lenders, turnaround specialists and other bankruptcy professionals, providing a forum for the exchange of ideas and information. For additional information on ABI, visit www.abiworld.org. For additional conference information, visit http://www.abiworld.org/conferences.html.