GCK On Law
Courts Disagree Whether the Attorney-Client Relationship Gives Rise to “Fiduciary Capacity” as Required by Section 523(a)(4)
Section 523(a)(4) of the Bankruptcy Code excepts from discharge all debts “for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny.” The term “fiduciary” has traditionally been given a “strict and narrow” definition, referring to...
Circuit Survey of Section 523(a)(1)(C) Willful Attempt to Evade or Defeat Tax Liability
Section 523(a)(l)(C) of the Bankruptcy Code provides that a discharge under Section 727 “does not discharge an individual debtor from any debt - (1) for a tax or a customs duty - (C) with respect to which the debtor made a fraudulent return or willfully attempted in...
Section 541(a) 704(1) Causes of Action/Pierce Corporate Veil
Section 541 of the Bankruptcy Code establishes that a debtor’s bankruptcy estate includes “all legal and equitable interests of the debtor in property as of the commencement of the case.” This includes potential and actual causes of action that run in the debtor’s...
Courts Disagree Whether Actual Prior Course of Dealing is Necessary to Ordinary Course Defense Under Section 547(c)(2)
Section 547(c)(2)(B) of the Bankruptcy Code was the former subjective component of the three-pronged test set forth in Section 547(c)(2) of the Bankruptcy Code and involves the question of whether the transfer was “made in the ordinary course of business or financial...
Subchapter V Confirmation: Fair and Equitable Cramdown under Section 1191(b)
Subchapter V of the Bankruptcy Code allows a debtor to confirm a “consensual” Subchapter V plan if the requirements of Section 1129(a), other than subparagraph 15, are met. However, the debtor may seek a “non-consensual” cramdown of a Subchapter V plan under Section...