Statement of Profitability Must Be in Writing to Underpin a Nondischargeability Claim
A statement about the profitability of a corporation the debtor owns is a statement about the debtor’s own financial condition, the Fifth Circuit says.
Eleventh Circuit Reads Husky Narrowly, Perhaps Too Narrowly
Reading Husky narrowly, the Eleventh Circuit requires that fraud occur before a debt arises to make the debt nondischargeable under Section 523(a)(2)(A).
Fifth Circuit Cites ‘Clearly Erroneous’ Findings to Declare a Debt Nondischargeable
Circuit says it’s easy to show reasonable reliance on a false financial statement.
Ninth Circuit Creates a Legal Fiction to Uphold Recovery of an Unauthorized Transfer
Ninth Circuit assumed that transferred property must remain property of the estate after conversion from ‘13’ to ‘7’ before the chapter 7 trustee can avoid an unauthorized transfer under Section 549.
Lawyer for Madoff Customer Slapped with $57,347 Discovery Sanction
Calling the Madoff trustee a liar and basing a discovery motion on facts known to be false resulted in sanctions under Rule 37(a)(5)(B).
Silence in the Face of a Duty to Disclose Is Not a ‘Statement,’ 9th Cir. BAP Holds
The Ninth Circuit BAP closed a loophole that would have allowed a recipient of public assistance benefits to discharge a debt for overpayment.
Fifth Circuit’s Seminal Reed Decision Not Followed in Chapter 13
Bankruptcy judge finds no statutory power for a chapter 13 trustee to prosecute a lawsuit that the debtor was judicially estopped for pursuing.
Circuit Judge Questions Applicability of Veil Piercing and Alter Ego to Trusts
Sixth Circuit upholds dismissal of claims for reverse veil piercing and reverse alter ego.