In In re: John Shart and Elke Gordon Shardt, an unpublished decision by the United States Bankruptcy Appellate Panel (BAP) for the Ninth Circuit, the BAP affirmed the bankruptcy court’s ruling that chapter 7 co-debtor’s spouse did not directly engage in fraudulent conduct, but remanded the action back to bankruptcy…
In Bullock v. Bankchampaign, N.A., 569 U.S. ___ (2013), the United State Supreme Court held that the term “defalcation” in the Bankruptcy Code includes a culpable state of mind requirement involving knowledge of, or gross recklessness in respect to, the improper nature of the fiduciary behavior giving rise to liability.…
In re: M.P. Construction Company, Inc., an unpublished decision by the United States Bankruptcy Appellate Panel (BAP) for the Ninth Circuit, the BAP affirmed the bankruptcy court’s ruling that ’cause’ existed to dismiss a corporate debtor’s chapter 7 bankruptcy under Bankruptcy Code Section 707(a) and to impose sanctions on debtor…