Debtor's Loss At High Court May Lead To Bigger Gain

Law360, New York (June 17, 2010, 10:52 AM EDT) -- Debtor Nadejda Reilly may have lost at the U.S. Supreme Court on Thursday, but the Schwab v. Reilly ruling will actually help debtors in the long run by outlining a new tactic for them to take in consumer bankruptcies going forward, say bankruptcy experts.

The 6-3 opinion, authored by Justice Clarence Thomas, essentially gives individuals a road map of how to clearly exempt an asset from a bankruptcy proceeding, according to practitioners.

“I believe the holding provides a bright line rule that will do nothing but...
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