High Court Urged To Broadly Apply Debt Relief In Bankruptcy

Law360, New York (March 18, 2013, 8:03 PM EDT) -- A trustee who unwittingly misused his trust’s funds argued before the U.S. Supreme Court Monday that he should not have to hand over $250,000 in a case that could impact the circumstances under which bankrupt entities may discharge their debts.

The petitioner asks the court to determine whether the term “defalcation” under the statute of bankruptcy law that discharges a bankrupt entity’s debts applies to a debtor if that debtor did not intentionally misuse certain funds. The court’s decision could significantly impact bankrupt companies’ and individuals’...
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