Directors and officers insurance proceeds in bankruptcy: the impact on an estate and its claimants
Article Abstract:
Courts should not apply a mechanical test to determine whether proceeds from directors and officers (D&O) liability insurance should be considered property of the bankruptcy estate. Courts should instead consider how inclusion or exclusion would affect the estate's value, as well as how the decision relates to the overall principles of bankruptcy law, especially the concept that claimants who are in similar situations should be treated similarly. The Fifth Circuit in its decision to exclude D&O insurance proceeds from the estate in Louisiana World Exposition, Inc. v. Federal Insurance Co. did not take all the relevant issues into consideration.
Publication Name: Bankruptcy Developments Journal
Subject: Law
ISSN: 0890-7862
Year: 1996
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Until debts do us part: marital property settlements in bankruptcy
Article Abstract:
Certain divorce debts are dischargeable under 11 USC 523(a)(15) but courts have struggled in developing a consistent criteria for its application. Courts will apply section 523(a)(15) when a decree of dissolution possesses a "hold harmless" provision. Courts differ however, on the tests to apply to determine debtors' ability to pay, on balancing equities and on applying remedies.
Publication Name: Commercial Law Journal
Subject: Law
ISSN: 0010-3055
Year: 1998
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