Discharge/Dischargeability

Treble Damages for ‘Willfulness’ Won’t Automatically Result in Nondischargeability

The lack of specific findings of fact by the arbitrator meant that a treble damage award for willful breach of contract was dischargeable.

Arbitration Clause Results in Temporary Stay of ‘Core’ Proceedings in Bankruptcy Court

Decision by Bankruptcy Judge Michelle Harner demonstrates the flaw in the Fourth Circuit’s rule requiring parallel proceedings in bankruptcy court and in arbitration when disputes are both core and non-core.

Avoiding a Lien Doesn’t Bar Collecting the Underlying, Nondischargeable Debt

First Circuit BAP explains what lien avoidance does and doesn’t do.
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Judge Elizabeth Katz Gives Some Relief for a Debtor Ineligible to Discharge Student Loans

Massachusetts bankruptcy judge requires flexibility from both the government and the debtor who is saddled with huge student loans.

Having Nondischargeable Debts Doesn’t Entitle a Chapter 7 Debtor to Object to Claims

Courts are split on whether having nondischargeable debts gives an individual chapter 7 debtor standing to object to claims.

PACA Violation Doesn’t Result in Nondischargeability for Defalcation, Tampa Judge Says

On an upcoming certified appeal, the Eleventh Circuit can decide whether violating a PACA trust is a ‘defalcation while acting in a fiduciary capacity’ that makes a debt nondischargeable.

Persistent Misbehavior Allows the Court to ‘Bend’ Strict Statutory Language, Circuit Says

First Circuit won’t allow a debtor to dismiss and avoid the consequences of abusive conduct.
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