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Denver Judge Sides with the Circuits: Nondischargeability Infects Subchapter V
Bankruptcy judges continue to disagree on whether debts of corporations with cramdown plans in Subchapter V can have nondischargeable debts.
Court:
Judge Oldshue Splits with Two Circuits: No Nondischargeability for Sub V Corporations
The bankruptcy judge in Pensacola, Fla., is giving the Eleventh Circuit an opening to split with the Fourth and Fifth Circuits.
Nondischargeability in Sub V Only Applies When It’s a Nonconsensual, Cramdown Plan
A creditor must control a class before its debt can become nondischargeable in Subchapter V.