Alban Beqiri discusses recent court decisions that are narrowing the scope of bankruptcy relief available to debtors in the Bankruptcy Law Section of the State Bar of Texas’ Winter Newsletter. There is a growing judicial consensus that certain discharge exceptions under Section 523(a) of the Bankruptcy Code may apply to corporate debtors in Subchapter V cases, potentially limiting the debts that can be discharged through a nonconsensual plan.

Alban also analyzes the U.S. Supreme Court’s decision in Bartenwerfer v. Buckley and its expanding impact on nondischargeability litigation. Courts are increasingly willing to impute fraud and other misconduct to debtors based on the actions of partners, agents, affiliates, and other related parties, broadening potential exposure for both individual and corporate debtors and reshaping the risks creditors and restructuring professionals must consider.

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