Trustee Wins Supreme Court Fight Over Debt Relief Bar

Law360, Los Angeles (May 14, 2013, 6:50 PM EDT) -- The U.S. Supreme Court on Monday sided with a trustee who unwittingly misused his trust's funds, ruling that the legal term of “defalcation” means that gross negligence or knowledge of wrongdoing must be shown to block him from getting a bankruptcy court to discharge his debt.

In a unanimous decision written by Justice Stephen G. Breyer, the court explored the history and uncertainty surrounding the term “defalcation,” noting that Congress added it to an 1867 bankruptcy statute and that “legal authorities have disagreed about its meaning...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.