Taking Exception to the New Corporate Discharge Exceptions

Taking Exception to the New Corporate Discharge Exceptions, by Ralph Brubaker, discusses the BAPCPA amendments that make certain corporate fraud debts non-dischargeable. Although, on its face, the change seems like sound policy, the author emphasizes that the function of a corporate discharge is very different than an individual discharge. Excepting certain debts from a corporate discharge could have the effect of punishing innocent creditors for the debtor’s misconduct and leaving uncertainty surrounding corporate reorganizations.