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The discharge of an innocent partner.

Authors :
Cunningham, Thomas J.
Source :
Commercial Law Journal. Summer, 1994, Vol. 99 Issue 2, p157-175.
Publication Year :
1994

Abstract

The majority view that nondischargeability follows the debt when the debt was incurred fraudulently is inconsistent with the legislative history of the Bankruptcy Code of 1978. A majority of courts have ruled that debts in bankruptcy incurred fraudulently by one partner can be imputed to another partner under state agency law. Analysis of the legislative history and the text of the Bankruptcy Code indicates that Congress did not intend that debts be nondischargeable unless the debtor committed actual fraud. The courts should attach nondischargeability to the defrauding debtor not the debt.

Details

ISSN :
00103055
Volume :
99
Issue :
2
Database :
Gale General OneFile
Journal :
Commercial Law Journal
Publication Type :
Periodical
Accession number :
edsgcl.15881368