News & Analysis as of

Fiduciary Duty Dischargeable Debts

Winstead PC

Court Held That Those In Control Of A Limited Liability Company May Owe Fiduciary Duties To The Company And Its Members

Winstead PC on

​​​​​​​In In re Mijares, a plaintiff claimed that a defendant defrauded him and breached fiduciary duties owed to him by charging improper, excessive, and unauthorized expenses to their medical practice, causing the...more

Freeman Law

Bankruptcy and Non-Dischargeability Causes of Action

Freeman Law on

This adversary proceeding in Rennaker v. Davis, Case No. 20-04065 (Bankr. N.D. Tex., Nov. 9, 2021), involves a litany of non-dischargeability allegations – both under 11 U.S.C. §523 and §727. Judge Mark Mullin’s opinion...more

Ward and Smith, P.A.

Will My Judgment Get Discharged in Bankruptcy?

Ward and Smith, P.A. on

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

Gray Reed

Closing up Shop: Your Company and You

Gray Reed on

Seeing the bottom line awash with red ink yet again, Susie Sears reluctantly decided to shut down her family owned Widgets-R-Us. ...more

Winstead PC

Breach of Fiduciary Duty Judgment May Be Dischargeable In Bankruptcy

Winstead PC on

It is not uncommon for a successful plaintiff in a breach of fiduciary duty case to have their collection efforts thwarted by a defendant filing for bankruptcy. The issue is whether the state court judgment is dischargeable...more

Foley & Lardner LLP

Seventh Circuit Says Violations of Wisconsin’s Theft-by-Contractor Statute Are Not Dischargeable in Bankruptcy

Foley & Lardner LLP on

The Bankruptcy Code prevents an individual debtor from discharging certain debts, including, upon request of the creditor, debts for “fraud or defalcation while acting in a fiduciary capacity.” 11 U.S.C. § 523(a)(4). The...more

Pullman & Comley, LLC

Bankruptcy Beat: Jockeys Nearing Finishing Line in 25-Year Civil and Bankruptcy Litigation with their Former Business Managers

Pullman & Comley, LLC on

Hall of fame horse racing jockeys Laffit Pincay, Jr. and Chris McCarron first sued their former business managers, Vincent and Robert Andrews, in California District Court in 1989 for fraud, breach of fiduciary duty and other...more

Charles E. Rounds, Jr. - Suffolk University...

May the Trustee’s Personal Debt to the Trust Owed as a Result of a Breach of Trust be Discharged in Bankruptcy?

The U.S. Bankruptcy Code provides that a personal debt is not dischargeable if the debt had been occasioned by the debtor’s defalcation while acting in a fiduciary capacity. Courts of appeals had long disagreed about the...more

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