• The Securities Claim Exemption in Bankruptcy: The Good, the Bad, and the Ugly
  • November 17, 2009 | Author: Nelson S. Ebaugh
  • Law Firm: Nelson S. Ebaugh, P.C. - Houston Office
  • In a bankruptcy, the debtor’s goal is to avoid paying as many debts as possible. In doing so, the debtor will hopefully obtain a “fresh start.” For public policy reasons, however, debtors are barred from avoiding the payment of certain debts. In 2002, Congress added a new category of debt that may not be discharged. The new category includes debt arising from securities law violations. This Article examines the “securities claim exemption” to the discharge of debt arising from securities law violations.