Legal Updates

On behalf of a corporate/creditor client, the firm might be the first in the U.S. Bankruptcy Court for the District of Oregon (and maybe the first anywhere) to successfully apply new bankruptcy statutes that barred a debtor from discharging a debt. The debtor was an employee of the creditor, and the creditor obtained a state court judgment that ruled the debtor stole money from the creditor while acting as an employee of the creditor. The debtor then filed for bankruptcy protection, to avoid the creditor’s judgment. The firm successfully obtained another judgment in the bankruptcy court that held the debtor could not discharge the debt. The statute at issue provides that a debtor may not discharge a debt that is incurred by way of fraud while acting as a fiduciary.

Jan D. Sokol
Lawrence ("Lee") A. Wagner

Bankruptcy Law
Business & Commercial Litigation