June 18, 2013 Articles

The Latest Supreme Court Decision on Bankruptcy: Bullock v. BankChampaign

The High Court finally defined the term "defalcation."

By Aaron M. Kaufman

In the most recent Supreme Court decision issued on bankruptcy, Bullock v. BankChampaign, N.A., No. 11-1518, slip op. (May 13, 2013), the High Court finally defined “defalcation” as that term is used in section 523(a)(4) of the Bankruptcy Code. That provision excepts debts from discharge where the debts arise from “fraud or defalcation while acting in a fiduciary capacity, embezzlement or larceny.” 11 U.S.C. § 523(a)(4).

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