{"id":6080,"date":"2021-10-13T10:00:00","date_gmt":"2021-10-13T15:00:00","guid":{"rendered":"https:\/\/hoorfarlaw.com\/blog\/?p=6080"},"modified":"2021-09-27T13:45:55","modified_gmt":"2021-09-27T18:45:55","slug":"consumers-werent-discharged-under-section-1141d6a","status":"publish","type":"post","link":"https:\/\/hoorfarlaw.com\/blog\/?p=6080","title":{"rendered":"Consumers Weren\u2019t Discharged Under Section 1141(d)(6)(A)"},"content":{"rendered":"\n<p>Reversing the bankruptcy court while expounding and expanding on the Supreme Court\u2019s <em>Cohen<\/em> decision, District Judge Paul A. Engelmayer of New York ruled that a civil penalty imposed by the Federal Communications Commission for defrauding consumers is not discharged in a corporate debtor\u2019s chapter 11 case under Section 1141(d)(6)(A).<\/p>\n\n\n\n<p>In <em>Cohen v. de la Cruz<\/em>, 523 U.S. 213 (1998), the Supreme Court held that treble damages and attorneys\u2019 fees imposed against a bankrupt landlord in favor of tenants under state law for actual fraud in charging excess rent were not dischargeable under Section 523(a)(2)(A), even though the treble damages were in excess of the actual damages sustained by the tenants.<\/p>\n\n\n\n<p>The case before Judge Engelmayer was different from <em>Cohen<\/em> in that the government had not been defrauded, whereas the tenants in <em>Cohen<\/em> had been.<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"alignright size-full is-resized\"><a href=\"http:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2016\/07\/bankruptcyy.jpg\"><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2016\/07\/bankruptcyy.jpg\" alt=\"\" class=\"wp-image-3032\" width=\"261\" height=\"130\" srcset=\"https:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2016\/07\/bankruptcyy.jpg 702w, https:\/\/hoorfarlaw.com\/blog\/wp-content\/uploads\/2016\/07\/bankruptcyy-300x150.jpg 300w\" sizes=\"auto, (max-width: 261px) 100vw, 261px\" \/><\/a><\/figure><\/div>\n\n\n\n<p><strong>Considering bankruptcy? Reach out to our office at 816-524-4949 or visit our <a href=\"https:\/\/hoorfarlaw.com\">website <\/a>to discuss if this is your best option.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reversing the bankruptcy court while expounding and expanding on the Supreme Court\u2019s Cohen decision, District Judge Paul A. Engelmayer of New York ruled that a civil penalty imposed by the Federal Communications Commission for defrauding consumers is not discharged in &hellip; <a href=\"https:\/\/hoorfarlaw.com\/blog\/?p=6080\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1117,1],"tags":[],"class_list":["post-6080","post","type-post","status-publish","format-standard","hentry","category-bankruptcy","category-general"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/6080","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6080"}],"version-history":[{"count":1,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/6080\/revisions"}],"predecessor-version":[{"id":6081,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/6080\/revisions\/6081"}],"wp:attachment":[{"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6080"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6080"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hoorfarlaw.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6080"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}