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Defalcation Defined

A recent Supreme Court ruling means that all prior lower court decisions addressing the mental state requirement for defalcation have little or no precedential value.

24 minute readJune 21, 2013 at 09:43 AM
By
Thomas M. Byrne
Defalcation Defined

Section 523(a)(4) of the Bankruptcy Code excepts from discharge debts “for fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny ' .”

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