Defalcation, Bankruptcy and Fiduciary Litigation

Last week, the United States Supreme Court issued its opinion in Bullock v. BankChampaign, N.A., which addressed the circumstances in which a breach of fiduciary duty judgment can be discharged in bankruptcy proceedings. Specifically, the Court resolved a deeply fractured Circuit split on the scope of the term “defalcation” within Section 523(a)(4) of the Federal Bankruptcy Code. That Section of the Bankruptcy Code provides that an individual cannot obtain bankruptcy discharge “for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny.” For years, the lower courts had struggled with what, exactly, “defalcation” means. Wonder no longer because the Supreme Court has defined it.

Full Article and Source:
Defalcation, Bankruptcy and Fiduciary Litigation

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2 Responses to “Defalcation, Bankruptcy and Fiduciary Litigation”

  1. Thelma Says:

    Maybe the fiduciaries will rethink their thieving, after reading this decision.

  2. honeybear Says:

    I can't quite understand what they're saying here…

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