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Tag Archives: fraud

Does Subchapter V Allow Corporations to Discharge Debts Based on Fraud?

The Small Business Reorganization Act of 2019 created Subchapter V, designed to allow small companies to reorganize without Chapter 11’s usual expenses, delays and complex procedures. Subchapter V applies to both individual and corporate debtors, but not always equally to both. Federal courts are in conflict over the ability of corporations to discharge certain types […]

U.S. Supreme Court Rules Another Person’s Fraud Can Bar a Debt Discharge

Bankruptcy law has long barred the discharge of debts when the debtor has committed fraud. The rationale is that people should not be rewarded for the negative consequences of their unlawful actions. Now, the U.S. Supreme Court has settled the question of whether the fraud exception can apply when someone other than the debtor is […]

What Can Cause Your Chapter 7 Petition to be Denied?

Chapter 7 bankruptcy offers consumers a chance to be relieved of crushing debt and to get a fresh financial start. However, the law is not intended as a cover for fraud, deception or other conduct abusive of the bankruptcy system. Debtors who seek the law’s protection are held to high standards of good faith and […]

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