24 Questions
In a no-asset, no-claims-bar-date bankruptcy case, why would a debtor move to reopen the case to add omitted 'garden variety debts'?
To amend the schedules and remove the debts from the discharge.
Under what circumstances can creditors request a declaratory judgment action regarding the dischargeability of their debts?
If the debts fall under Section 523(a)(2), (4) or (6) for fraud, embezzlement, or tort.
What is the significance of the claims bar date in a bankruptcy case?
It marks the deadline for creditors to file proof of claims.
What type of debts are considered 'garden variety debts' in a bankruptcy case?
Normal bills like phone, electric, and cable.
Which type of debt is not dischargeable under 523(a)(6)?
Debts arising from intentional torts
In the case of In Re Mikulsky, what did the bankruptcy court conclude about the debtor's conduct?
It was malicious
What type of conduct did the Wisconsin courts use interchangeably with 'malicious conduct'?
Outrageous conduct
What was the basis of the judgment in the case of In Re Mikulsky?
Violation of trade secrets act
What does 523(a)(6) require for a debt to be nondischargeable?
Intentional torts
What type of injury does 523(a)(6) cover for the debt to be nondischargeable?
Intentional injury
What is the key element necessary for a finding under 523(a)(6)?
Intent
What type of debt does 523(a)(6) not cover for dischargeability?
Negligent debt
Which type of debt is not excepted from discharge under § 523(a)(6)?
Debt based on breach of contract
Under what circumstances would reliance on a statement regarding financial fraud be non-dischargeable?
If it is not in writing
What is the standard of proof for dischargeability exceptions under 523(a)?
Preponderance-of-the-evidence standard
Which type of transfer is necessarily nondischargeable in bankruptcy under § 523(a)(2)(a)?
Fraudulent transfers with actual intent to defraud
What is the key consideration for the dischargeability of student loans in bankruptcy?
The debtor's ability to maintain a certain standard of living
What type of damages for actual fraud are not dischargeable under § 523(a)(2)(a)?
Triple damages
What does the absence of a deadline for filing a proof of claim make impossible?
It makes it impossible to file a timely proof of claim
What does writing a Not Sufficient Funds Check violate?
§ 523(a)(6)
What does the Bruner Test assess for student loans in bankruptcy?
The debtor's ability to sustain a standard of living and certainty of hopelessness
What does a transfer for less than fair value not necessarily indicate under § 523(a)(2)(a)?
Actual intent to defraud
What is the basis for the non-dischargeability of settlement payments in bankruptcy?
They are considered fraudulent transfers
What type of debt based on breach of contract is not excepted from discharge under § 523(a)(6)?
Debt arising from a material breach
Study Notes
Bankruptcy Law Cases Summary
- A Chapter 7 discharge applies to all unscheduled debts except those made nondischargeable by § 523.
- In Re Pickens: A debt based on breach of contract is not excepted from discharge under § 523(a)(6).
- Lamar v. Appling: Any reliance on a statement regarding financial fraud must be in writing for it to be non-dischargeable.
- McClellan v. Cantrell: Only fraudulent transfers with actual intent to defraud are nondischargeable in bankruptcy under § 523(a)(2)(a).
- Archer v. Warner: Settlement payments are non-dischargeable in bankruptcy, even if the debtor files for bankruptcy.
- Tetzlaff v. Educational Credit: Student loans can only be discharged under "undue hardship" if the debtor meets specific criteria.
- Bruner Test for Student Loans in bankruptcy: It assesses the debtor's ability to sustain a standard of living and certainty of hopelessness.
- Grogan v. Gardner: The standard of proof for dischargeability exceptions under 523(a) is the preponderance-of-the-evidence standard.
- Cohen v. De La Cruz: Treble damages for actual fraud are not dischargeable under § 523(a)(2)(a).
- The absence of a deadline for filing a proof of claim makes it impossible to file a proof of claim that is not timely.
- Writing a Not Sufficient Funds Check is not a violation of § 523(a)(6).
- Transfer for less than fair value does not necessarily indicate actual intent to defraud under § 523(a)(2)(a).
Test your knowledge of bankruptcy law cases with this summary quiz. Explore key rulings on dischargeable debts, non-dischargeable debts, fraudulent transfers, student loans, and the standards of proof for dischargeability exceptions.
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