The Lessons Of Follett Higher Education V. Berman

Law360, New York (February 18, 2011, 12:56 PM EST) -- Creditors use a number of legal techniques to ensure payment. The Bankruptcy Code renders many of the devices useless. Still, the code provides opportunity for creditors to object to the discharge of their debt under certain circumstances.

Recently, the court in Follett Higher Education Group Inc. v. Berman, Case No. 10-1882 (7th Cir. Jan. 21, 2011), discussed the policies and practicalities of objecting to discharge of debt under 11 U.S.C. § 523(a)(4). While Follett was unsuccessful, the court’s holding provides guidance to creditors’ counsel for drafting...
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