Another Court Holds that PACA Trusts Do Not Give Rise to Nondischargeable Debts

Violating a PACA trust does not result in ‘defalcation while acting in a fiduciary capacity’ that makes a debt nondischargeable, Bankruptcy Judge Panos says, taking sides with the Eleventh Circuit.

Fifth and Fourth Circuits Hold that Debts in Sub V Can Be Nondischargeable

Differing with eight lower courts, the Fifth Circuit sided with the Fourth Circuit by holding that debts of corporate debtors in Subchapter V can be nondischargeable in nonconsensual plans.

For No Notice in an ‘Asset’ Case, the Entire Debt Is Not Discharged, the Ninth Circuit Says

The Ninth Circuit explains why the debt owing to a creditor without notice is discharged in a ‘no asset’ case but not in an ‘asset’ case.