The Oklahoma Bar Journal December 2023

Beware that taking this course of action may obligate you (depending on the case law and local rules in your jurisdiction) to pursue the case through trial on behalf of all creditors in the bankruptcy case. 17

(ii) any settlement agree ment entered into by the debtor; or (iii) any court or admin istrative order for any damages, fine, penalty, citation, restitutionary payment, disgorgement payment, attorney fee, cost or other payment owed by the debtor. 15

your jurisdiction) to pursue the case through trial on behalf of all creditors in the bankruptcy case. 17 The sorts of bad behavior that give rise to nondischargeability under Section 727 typically arise out of actions by the debtor in connec tion with the bankruptcy proceed ing itself. Section 727 provides as follows:

(19) that–

(A) is for–

(i) the violation of any of the federal securities laws (as that term is defined in Section 3(a)(47) of the Securities Exchange Act of 1934), any of the state securities laws or any regulation or order issued under such federal or state securities laws; or (ii) common law fraud, deceit or manipulation in connection with the purchase or sale of any security; and (B) results, before, on or after the date on which the petition was filed, from– (i) any judgment, order, consent order or decree entered in any federal or state judicial or adminis trative proceeding;

(a)The court shall grant the debtor a discharge, unless–

Regardless of the basis asserted to seek nondischargeability, the creditor will be required to insti tute an adversary proceeding within the bankruptcy case 16 and present evidence to the bankruptcy court demonstrating the elements giving rise to nondischargeability. 11 U.S.C. §727 An alternative basis for obtain ing a determination of non- dischargeability is to file an adver sary to have the entirety of the debtor’s discharge denied as to all claims and all creditors. Beware that taking this course of action may obligate you (depending on the case law and local rules in

(1) the debtor is not an individual;

(2) the debtor, with intent to hinder, delay or defraud a creditor or an officer of the estate charged with custody of property under this title, has transferred, removed, destroyed, mutilated or concealed, or has permitted to be transferred, removed, destroyed, mutilated or concealed–

Statements or opinions expressed in the Oklahoma Bar Journal are those of the authors and do not necessarily reflect those of the Oklahoma Bar Association, its officers, Board of Governors, Board of Editors or staff.

14 | DECEMBER 2023

THE OKLAHOMA BAR JOURNAL