"Willful" and "malicious" injury under Section 523(a)(6): is failure to carry state-mandated insurance grounds for denying discharge of uninsured tort debt?
Article Abstract:
A debtor's failure to carry automobile or workers' compensation insurance, or other insurance required by state law, is not sufficient grounds to deny discharge of debt under the Bankruptcy Code. Congress intended that there be few exceptions to this concept, but courts have misapplied the "willful and malicious injury" terminology in the statute in order to aid injured creditors. The phrase should be applied only to intentional harm done by debtors, so courts should adopt a strict interpretation of this phrase.
Publication Name: Commercial Law Journal
Subject: Law
ISSN: 0010-3055
Year: 1997
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Tort claims and judgements as debts for "willful and malicious injury" nondischargeable under Section 523(a)(6) of the Bankruptcy Code
Article Abstract:
Practitioners have increased their invocation of Section 523(a)(6) of the Bankruptcy Code in an effort to avoid paying damages for tortious claims against their clients by having such cases heard in Bankruptcy Court. The statute was drafted as a way of preventing debtors from discharging debts that result from intentional torts. The standard for willful and malicious injury under this section and its applicability, as well as other strategies for attaining discharge, are discussed.
Publication Name: Commercial Law Journal
Subject: Law
ISSN: 0010-3055
Year: 1995
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Debts nondischargeable for "willful and malicious injury": applicability of Bankruptcy Code Section 523(a)(6) in a commercial setting
Article Abstract:
The Bankruptcy Code's Section 523(a)(6) limits the power of debtors to seek relief in bankruptcy by declaring that debts causing "willful and malicious injury" to another are not dischargeable. However, courts disagreed on what is "willful and malicious." The Supreme Court restricted this section to deliberate and intentional injuries. Moreover, this clause is applicable to commercial bankruptcies. Various factors must be assessed to determine the requisite intent to injure.
Publication Name: Commercial Law Journal
Subject: Law
ISSN: 0010-3055
Year: 1999
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