Burr & Forman

04.13.2017   |   Articles / Publications

Real Estate Finance Journal: Debtors Who Misuse Collateral Can Lose the Benefit of Discharging their Debt in Bankruptcy

In an article published in the Winter/Spring 2017 issue of Thomson Reuter’s Real Estate Finance Journal, Burr & Forman Jacksonville associate Samantha Alves Orender provides guidance on how debtors who misuse collateral may be at risk of losing the benefit of discharging their debt in bankruptcy. In the article, Orender provides an analysis of a provision of the Bankruptcy Code, which can be useful to creditors seeking recovery of a debt and addresses the decision and its implications. She explains that in the case Monson v. Galaz the U.S. Court of Appeals for the Eleventh Circuit recently affirmed the bankruptcy court’s decision, which held that a debtor’s conduct constituted a willful and malicious injury to a creditor within the meaning of 11 U.S.C. § 523(a)(6), because the debtor injured the creditor’s right to recover its loan, the injury was intended and the debtor was conscious of his wrongdoing. This case provides an example of behavior considered to be a “willful and malicious injury” and provides helpful analysis of a provision of the Bankruptcy Code, which can be useful to creditors seeking recovery of a debt.

Download the full article, “Debtors Who Misuse Collateral Can Lose the Benefit of Discharging their Debt in Bankruptcy.”

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