Section 523(a) Exceptions to Discharge Do Not Apply to Subchapter V ...

02/22/24

… at least in Judge Sigler’s Court in the Northern District of Georgia. Primary Investments Group, Inc. v. RA Custom Design Inc., 2024 WL 607716, Adv. Proc. No. 23-05193-sms (February 13, 2024). The holding is consistent with most courts that have ruled on the issue, with the exception of the Fourth Circuit Court of Appeals in In re Cleary Packaging, LLC, 36 F.4th 509 (4th Cir. 2022).

This Court agrees with fellow bankruptcy courts and the Ninth Circuit Bankruptcy Appellate Panel that § 1192 does not make § 523(a) exceptions to discharge applicable to corporate entities. While the Court appreciates the Fourth Circuit’s analysis of the plain language of § 1192, the Court agrees with a notable commentator that the 4th Circuit’s conclusion does not necessarily follow from the language of § 1192. Moreover, the Court does not read § 1192(2)’s reference to § 523(a) to eliminate the restriction inherent in §523(a) that it only applies to individuals.

Scott Riddle’s practice focuses on bankruptcy and reorganization. Scott has represented businesses and other parties in Bankruptcy cases for over 30 years. You can contact Scott at 404-815-0164 or [email protected]. For more information, click here.

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Section 523(a) Exceptions to Discharge Do Not Apply to Subchapter V ...