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.

Evidence of Intent to ‘Hinder’ Wasn’t Sufficient to Deny Discharge, District Judge Says

The bankruptcy court’s inference of intent to hinder the trustee wasn’t supported by the evidence, the district judge says in reversing a denial discharge.