Recent Posts

Fifth Circuit Narrows Fraud Dischargeability Claims
Posted on 29 May 2015 by Stephen Sather

Rejecting a Seventh Circuit precedent, the Fifth Circuit has ruled that a non-dischargeability claim under section 523(a)(2)(A) must be based upon a false representation. While bad conduct that does not involve a misrepresentation may be actionable under... Read More

Recovering Attorneys' Fees in Dischargeability Litigation
Posted on 20 Feb 2015 by Stephen Sather

A new opinion from Judge Tony Davis answers some interesting questions about recovery of attorneys' fees in dischargeability litigation. Schwertner Backhoe Services, Inc. v. Kirk (In re Kirk) , Adv. No. 11-1239 (Bankr. W.D. Tex. 1/28/15), which can... Read More

"Undue Hardship" Under Section 523(a)(8): Can the Debtor's Student Loans Be Discharged?
Posted on 30 Aug 2012 by Leslie Treff

The provisions of Section 523(a)(8) generally qualified education loans from discharge, unless the denial of a discharge would "impose an undue hardship" on the debtor. Although the words "undue hardship" are not defined in the Bankruptcy... Read More

Dischargeability of Student Loans in Bankruptcy
Posted on 6 May 2014 by Stephen Sather

This is a paper that I wrote for the Commercial Law League Spring Meeting on April 25, 2014. The Commercial Law League, which is a national creditors’ rights organization, is debating whether to support greater dischargeability of student loans... Read More

Leading Fifth Circuit Cases on Dischargeability in Bankruptcy
Posted on 4 Mar 2014 by Stephen Sather

This is an article that I did for this year's Advanced Consumer Bankruptcy Course. I have attempted to summarize all of the published decisions on dischargeability from the Supreme Court, Fifth Circuit, Texas District Courts and Texas Bankruptcy Courts... Read More

Contumacious Case of Coercion or Merely Rude? Fifth Circuit Judges Debate the Meaning of Section 523(a)(6)
Posted on 13 Feb 2012 by Stephen Sather

The case of a former corporate officer who demanded to be bought out for an alleged ownership interest and said some really nasty things resulted in a split decision with Fifth Circuit Judges Edith Jones and Catharina Haynes on opposite sides. Matter... Read More

Divided U.S. Supreme Court: Debtors' Farm Sale Tax Liability Not Dischargeable
Posted on 14 May 2012 by LexisNexis® Mealey's™ Legal News

WASHINGTON, D.C. - (Mealey's) A divided U.S. Supreme Court ruled 5-4 Monday that the federal income tax liability that resulted from a debtor's post-petition farm sale is not "incurred by the estate" for the purposes of 11 U.S. Code... Read More

Yet Another Hanging Paragraph Creates a Taxing Situation
Posted on 23 Jan 2012 by Stephen Sather

A pair of new opinions suggests that dischargeability of taxes is even more complicated subsequent to BAPCPA. In Matter of McCoy , No. 11-60146 (5th Cir. 1/4/12), which can be found here [ an enhanced version of this opinion is available to lexis... Read More

The Supreme Court's Holding in United Student Aid Funds, Inc. v. Espinosa
Posted on 21 Apr 2010 by Kenneth Klee

Parties challenging a bankruptcy court's final order almost always must take a direct appeal or be forever barred from collateral attack, even when the order contains a clear legal error. Further, when a statute permits a court to act only if certain... Read More

Student Loans: Nondischargeability Questioned in Seventh Circuit and Beyond
Posted on 29 Apr 2013 by Sheppard Mullin

by Adam McNeile Conventional wisdom says that it is nearly impossible to obtain a discharge of student loan debt in bankruptcy. Indeed, Section 523(a)(8) expressly excepts student loans from discharge, unless the exception of such indebtedness from... Read More