Judge Craig Gargotta

Judge Gargotta Nixes Non-Dischargeability Claim Against Corporate SubV Debtor

11/28/22

 Distinguishing a precedent from his own district and disagreeing with the Fourth Circuit, Judge Craig Gargotta has ruled that non-dischargeability only applies to human Subchapter V debtors. Adv. No. 22-5052, Avion Funding, LLC v. GFS Industries, LLC (Bankr. W.D. Tex. 11/10/2022).  The decision can be found here.

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Opinion Illustrates Distinction Between Good Practices and Sec. 727 Violation

05/26/22

 No attorney wants to see his name mentioned prominently in an opinion. However, if it has to happen, it's better if its something like this:  "Chance McGhee is an experienced and competent attorney that has practiced consumer bankruptcy law for many years." Adv. No. 21-5036; Wilson v. Silva (In re Silva) (Bankr. W.D. Tex. 5/19/2022).  The opinion can be found here. As the opinion lays out, Mr.

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Willful and Malicious Standard Encompasses Alienation of Affections

10/18/19
Divorce can be both expensive and traumatic for the parties going through it but in a few states, it can be expensive for the outside party causing the divorce. As one Texas debtor recently found out, causing a marriage to crumble in North Carolina can result in a non-dischargeable debt.   King v. Huizar (In re King), No. 19-5007 (Bankr. W.D. Tex.
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Beware the Living Trust! You May Lose Your Homestead

09/16/19
A living trust is a legal document that states who you want to manage and distribute your assets if you're unable to do so, and who receives them when you pass away.
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Texas Bankruptcy Court Rejects Claim That Attorneys Were Non-Statotory Insiders

05/14/19
Last year, the Supreme Court ruled on a case involving a claim that a party was a non-statutory insider without ever deciding what legal test should apply.   U.S. Bank National Association v. The Village at Lakeridge, LLC, 138 S.Ct.
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Second Western District Judge Finds Proceeds From Post-Petition Sale Can't Be Clawed Back in Chapter 7

11/05/15
After sorting through conflicting precedents, Judge Craig Gargotta has ruled that a chapter 7 debtor who owned a homestead property on the date of bankruptcy and claimed the property as exempt did not lose the exemption when the property was sold and proceeds were not reinvested within six months.    Lowe v. DeBerry (In re Deberry), Adv. No. 15-5054 (Bankr. W.D. Tex.
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After Woerner, Courts Look for "Good Gambles"

09/15/15

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Two Cases Illustrate How to Bring a Chapter 11 Case to a (Successful) End

11/26/14

This is an article about the end of a Chapter 11 case.  As the Doors put it:

This is the end
Beautiful friend
This is the end
My only friend, the end

Of our elaborate plans, the end
Of everything that stands, the end

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Stern v. Marshall: The Texas Cases

05/20/12

This is a paper that I did for the Austin Bar Association summarizing the Texas cases applying Stern v. Marshall to date.   Please note that where the holding is indented, I am directly quoting the opinion.   I also used the following key for highlighting certain decisions:

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