Fifth Circuit: Subchapter V Corporate Debtors Are Subject to Discharge Exceptions

In the case of Avion Funding v. GFS Industries, the Fifth Circuit held that corporate debtors that elect to proceed under Subchapter V of Chapter 11 are, pursuant to Section 1192 of the Bankruptcy Code, subject to the discharge exceptions set forth in Section 523 of the Bankruptcy Code.

7 minute read October 01, 2024 at 12:05 AM
By
Lawrence J. Kotler and Elisa Hyder
Fifth Circuit: Subchapter V Corporate Debtors Are Subject to Discharge Exceptions

In the case of Avion Funding v. GFS Industries (In re GFS Industries)

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