Pratt's Journal of Bankruptcy Law: Bullock v. BankChampaign: Defalcation Under Section 523(a)(4)

Articles / Publications

The authors of this article discuss a recent United States Supreme Court unanimous decision holding that the term "defalcation" in § 523(a)(4) of the Bankruptcy Code includes a culpable state of mind requirement similar to the other terms in the statute, involving knowledge of, or gross recklessness in respect to, the improper nature of the fiduciary behavior.

Whether because of the declining docket of the Court or the technical subject-matter involved, bankruptcy topics have come before the United States Supreme Court infrequently in recent years. This term, the Court heard a case out of the Eleventh Circuit, Bullock v. BankChampaign, to decide the following issues: (a) what degree of misconduct by a trustee constitutes "defalcation" under 11 U.S.C. § 523(a)(4) of the Bankruptcy Code, and (b) whether that definition of defalcation includes actions that result in no loss of property.

Burr
Jump to Page

Contact Us

About Burr & Forman Cybersecurity & Data Privacy Law

Burr & Forman's experienced team helps clients navigate the complex cybersecurity and data privacy landscape with strategies designed to assess current risks, develop a corrective action plan, implement best practices, and provide immediate and appropriate responses to a cybersecurity breach.

We use cookies to improve your website experience, provide additional security, and remember you when you return to the website. This website does not respond to "Do Not Track" signals. By clicking "Accept," you agree to our use of cookies. To learn more about how we use cookies, please see our Privacy Policy.

Necessary Cookies

Necessary cookies enable core functionality such as security, network management, and accessibility. These cookies may only be disabled by changing your browser settings, but this may affect how the website functions.


Analytical Cookies

Analytical cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.