Debts for a Partner’s Fraud Are Confirmed to be a Nondischargeable Debt According to the Supreme Court’s Opinion
In a unanimous opinion by the Supreme Court, the Court held an innocent partner liable for the fraud of another partner. Should the innocent party declare bankruptcy, the bankruptcy code would bar a discharge of the debt because it was obtained by false pretenses, a false representation or actual fraud. In Bartenwerfer v. Buckley, prior […]
A BALANCE OF POWER
WHICH LEVEL COURT IS BEST POSITIONED TO DECIDE THE QUESTION OF “INSIDER” STATUS UNDER THE BANKRUPTCY CODE? Determining whether a creditor or interested party to a bankruptcy proceeding is an “insider” is often critical. In Chapter 11 proceedings, if the Bankruptcy Court determines a creditor to be an insider, then he or she is not […]
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