Rochelle's Daily Wire

Status as a ‘known’ or ‘unknown’ creditor misses the point when a lease was either assumed or rode through the chapter 11 case, Judge Jernigan says.

Both individuals and corporations in subchapter V of chapter 11 are barred from discharging debts that are nondischargeable under Section 523(a).

Even if a dischargeability suit is based on a contract, the winner is not entitled to fee-shifting if the court rules on noncontract issues.

Finally, a circuit court cites Taggart to help a debtor enforce the discharge injunction.

The decision by the Supreme Court next term in Bartenwerfer will tell us whether debts can be automatically nondischargeable, even when the debtor is without fault.

Over a dissent, the Eleventh Circuit held that a 1995 chapter 11 plan discharged the liability of ‘related persons’ to pay health care benefits when a coal producer defaulted on the obligation in 2016.

The circuits are split on whether an innocent debtor’s liability is automatically nondischargeable when an agent or partner committed fraud.

Had Congress considered the facts that were before Bankruptcy Judge Elizabeth Brown, it surely would have written the statute differently, this writer believes.

Judge Klein let a lawyer off the hook for violating Rule 9011 because the lawyer had already been punished enough.

Bankruptcy judges are required to predict the unknown and the unknowable when deciding how much debtors can repay in student loans.