Does Bankruptcy Discharge Sexual Harassment Debts?

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While winning a sexual harassment suit against an employer may provide emotional satisfaction, efforts to collect a monetary judgment may have suffered a setback because of a recent bankruptcy court decision.

According to In re Busch, a bankruptcy court decision from the Northern District of New York, even if the employer files for bankruptcy relief for the primary purpose of discharging the judgment, the plaintiff judgment creditor may be left in the cold. In fact, it may well be impossible for the harassment victim to claim exemption from discharge under Bankruptcy Code §523(a)(6).

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