Bankruptcy – Debt may be dischargeable under collateral estoppel (access required)

A debtor might be able to discharge a $20 million plus judgment through a Chapter 7 bankruptcy. The district court found the debt nondischargeable under principles of collateral estoppel, reasoning that, because the debtor was found liable for misappropriating trade secrets, that meant the debt was for “willful and malicious” injury, making it nondischargeable. The ...

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South Carolina Lawyers Weekly

Bankruptcy – Debt may be dischargeable under collateral estoppel

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