Consumer Bankruptcy, Fraud

High Court Bankruptcy Ruling Is a Warning to Joint Obligors

Troutman Pepper on 6/26/2023

In a unanimous decision, the U.S. Supreme Court held that Section 523(a)(2)(A) of the U.S. Bankruptcy Code precludes a debtor from discharging a debt obtained by fraud, regardless of the debtor's own culpability. ...more

Innocence Is No Defense: Debt Obtained by Fraud Is Nondischargable

Miller Canfield on 2/24/2023

A debt “for money, property, services, or an extension [. . .] of credit, to the extent obtained by [. . .] actual fraud,” is not dischargeable in a chapter 7 bankruptcy case. Courts have questioned whether this applied if...more

Compilation of Recent Developments in Bankruptcy Law - January 2023

Jenner & Block on 2/1/2023

1. AUTOMATIC STAY - 1.1 Covered Activities - 1.1.a Court declines to enjoin third party claims against the debtor’s jointly liable parent corporation. The debtor manufactured earplugs for many years. A major...more

Recent Developments in Bankruptcy Law, January 2023

Jenner & Block on 2/1/2023

1. AUTOMATIC STAY - 1.1 Covered Activities - 1.1.a Court declines to enjoin third party claims against the debtor’s jointly liable parent corporation. The debtor manufactured earplugs for many years. A major multinational...more

Restructuring Roundup - March 2022

Arnall Golden Gregory LLP on 3/29/2022

AGG’s Restructuring Roundup newsletter is a monthly update of legal issues and news affecting or related to commercial litigation and bankruptcy. The newsletter is a curation of published articles and news, and contains...more

The Discharge in Bankruptcy - Open Avenues for Consumer Creditors

Spilman Thomas & Battle, PLLC on 8/6/2020

In a typical consumer bankruptcy, a debtor seeks the benefit of two concepts. First, the debtor seeks the breathing room afforded that debtor by the automatic stay. Second, the debtor seeks to discharge all debt obligations...more

Bankruptcy Chatter and COVID-19: Bankruptcy & Creditors' Rights Insights, Issue 1

Spilman Thomas & Battle, PLLC on 6/1/2020

Welcome to our first edition of Bankruptcy Chatter - our e-newsletter devoted to bankruptcy and creditors' rights. Our goal is to bring you the most up-to-date information, especially given this uncertain time during the...more

Real Property, Financial Services, & Title Insurance Update: Week Ending October 4, 2019

Carlton Fields on 10/31/2019

Real Property Update - Foreclosure / Bankruptcy / Surrender: borrower cannot challenge judgment of foreclosure entered upon judicial notice of his statement of intention to surrender the property and order of discharge...more

Will My Judgment Get Discharged in Bankruptcy?

Ward and Smith, P.A. on 5/20/2019

Bankruptcy is meant to provide a fresh start for the honest but unfortunate debtor. A debtor who files Chapter 7 does so with the presumption that all his or her debts will be forgiven or "discharged." But what about the...more

Distressed Solutions: The Ins and Outs of Receiverships

K&L Gates LLP on 11/28/2018

Receiverships are an extraordinary remedy that can maximize the return to creditors by freezing assets and allowing a third party to conduct necessary litigation. John Gardner (Raleigh) and David Neu (Seattle) join host...more

Burr Alert: Lenders Beware: 11th Circuit holds borrower’s false oral statement regarding single asset does not provide basis for...

Burr & Forman on 3/23/2017

Section 523(a)(2) of the Bankruptcy Code is clear that a debtor can discharge a debt for money obtained by a false statement respecting the debtor’s financial condition unless that statement is in writing. What hasnot been...more

Admission of Fraudulent Intent Is Not Conclusive Evidence of Fraudulent Intent (Sometimes)

Robins Kaplan LLP on 1/26/2017

In a previous blog post, we discussed a situation in which actual fraud could be found where the transferor had the noblest of intentions and had demonstrated no intent to defraud creditors. This week, we address a situation...more

It’s Not Just Actual Fraud: Intent to Hinder, Delay, or Defraud Can Be Present Even with the Best of Intentions

Robins Kaplan LLP on 1/4/2017

The Bankruptcy Code contemplates several penalties for transfers made by a debtor with an intent to “hinder, delay, or defraud” creditors. Although most situations focus on an “actual intent to defraud,” the Tenth Circuit...more

Bankruptcy Beat: Default Judgment Is Not Automatic Following Entry Of Default

Pullman & Comley, LLC on 7/2/2016

On May 12, 2016, the Honorable Julie A. Manning issued a decision in an adversary proceeding entitled Law Office of W. Martyn Philpot, Jr., LLC v. Day, which addressed two issues. The first issue was whether the plaintiff was...more

What Happened to my Mortgage?

Bennett Jones LLP on 1/18/2016

In 2015, and just before his retirement, Justice Murray of the Ontario Superior Court of Justice left us with a challenging legal decision that, for the time being at least, will matter to mortgage lenders....more

Revisiting the Post-Bankruptcy Toolbox: Don’t Forget to Compare the Financials

Spilman Thomas & Battle, PLLC on 1/6/2016

For better or worse, lenders have become increasingly familiar with the strange dynamic that is the post-bankruptcy minefield created by their borrowers filing a bankruptcy petition. Immediately, lenders begin thinking about...more

Equitable Liens: No Mortgage Does Not Necessarily Mean No Lien

Troutman Pepper on 10/14/2015

Marcum v. Marcum (In re Marcum), 508 B.R. 499 (Bankr. M.D. Fla. 2014) – A creditor made two prepetition loans to a chapter 13 debtor for payment of delinquent real estate taxes. The loans were supposed to be secured by...more

Bankruptcy Beat: Former NFL Player Defeats Fraud Allegations Which Results In Discharge Of Debt

Pullman & Comley, LLC on 6/18/2015

On March 31, 2015, the Honorable Albert S. Dabrowski issued a decision in Hamrah v. Coulette (In re Coulette), Adv. Pro. No. 13-2039, concerning the issue of whether an obligation created by a failed business investment gives...more

Affiliate Transfer: Fraudulent Conveyance or Unwinding Resulting Trust?

Troutman Pepper on 8/13/2014

A chapter 7 trustee sought to set aside as a debtor’s transfer of her interest in property held jointly with her husband to her husband’s corporation as a constructive fraudulent conveyance. The bankruptcy court agreed that...more

Connecticut District Court Affirms Ruling that Collateral Estoppel Effect of California Judgments for Fraud Established Them as...

Pullman & Comley, LLC on 4/24/2014

Debts based on fraud are not dischargeable in bankruptcy, but to achieve that result the aggrieved creditor must ordinarily commence a non-dischargeability action and prove the fraud. However, when an action for fraud is...more

Attorney fees properly discharged under bankruptcy law in family law matter

Hinshaw & Culbertson LLP on 4/17/2014

In Bendetti v. Gunness, 2014 DJDAR 623 (2014), the US Bankruptcy Appellate Panel (“BAP”) for the Ninth Circuit Court of Appeals affirmed the bankruptcy court’s decision. The bankruptcy court ruled that an attorney fee award...more

Consumer Bankruptcy › Fraud

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