Archive for July 2013

The term “defalcation” in § 523(a)(4) of the Bankruptcy Code includes a culpable state of mindrequirement involving knowledge of, or gross recklessness in respect to, the improper nature of the
fiduciary behavior, the U.S. Supreme Court held recently.

A business owner does not have a duty to make voluntary capital contributions to his financially-troubled business in order to avoid personal liability for its wage payment obligations, a bankruptcy judge in Northern Illinois has held.