Non Dischargeable Debt

Defending an adversary proceeding that seeks to have a debt declared “non dischargeable”

If you are a Debtor in bankruptcy a creditor may file an adversary proceeding against you seeking an order that your debt to that Creditor is “non dischargeable” meaning that it will still be owed after the bankruptcy was filed. A recent U.S. Supreme Court case has made it much more difficult for creditors to succeed in having a debt declared non dischargeable.

It is no longer enough to show that you broke a promise or that you were negligent or careless or that you made a false statement or “breached a fiduciary duty”. Now it must be shown that you had an actual dishonest mindset when dealing with that creditor.

It should be very difficult for any creditor to win a complaint for non dischargeabilty against an experienced bankruptcy attorney who understands this recent U.S. Supreme Court case.

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