Bankruptcy: Fraudulent Transfer-Spouse’s Discharge-Extinguished Liability

Staff Report//March 13, 2020//

Listen to this article

Where a creditor, which held a fraudulent transfer judgment against a debtor for transfers that she received from her husband, the discharge of the debtor’s spouse did not extinguish her liability, and the claim against the debtor resulted from the termination of a lease so the relevant cap applied, and the judgment of the bankruptcy appellate panel is reversed and remanded.

Judgment is reversed.

Lariat Companies Inc. v. Wigley (MLW No. 74667/Case No. 18-3489 – 8 pages) (U.S. Court of Appeals, 8th Circuit, Benton, J.) Appealed from U.S. Bankruptcy Appellate Panel, 8th Circuit. (Kurt Anderson, Minneapolis, for appellant) (George E. Warner Jr., Minneapolis, for appellee).