Eversheds Sutherland 11th Circuit Business Blog
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Securities Law Judgment Excepted from Discharge

On the same day the court decided Appling (below), the Eleventh Circuit issued a second bankruptcy-discharge opinion, this time addressing one of the more obscure exceptions from discharge, § 523(a)(19)(A)’s exception for judgments for securities law violations. Lunsford v. Process Technologies Services, LLC (In re Lunsford), 2017 WL 603845 (11th Cir. Feb. 15, 2017).  Judge Bill Pryor...

Court Broadly Construes Bankruptcy Discharge Exception for Fraud

One of the most litigated issues in bankruptcy court is whether a discharge of a particular claim should be granted to a debtor who has committed fraud relating to the claim, a statutory discharge exception found in section 523(a)(2)(A) and (B) of the Bankruptcy Code. The statute establishes a dichotomy between fraudulent statements regarding the debtor’s (or an “insider” of the...