Bankruptcy Discharges Corporate Officers
Corporate directors facing crushing judgments for leading their companies down the path to ruin can still find shelter in bankruptcy court, the 9th U.S. Circuit Court of Appeals ruled Wednesday. Though most liens are dischargeable under bankruptcy law, those incurred as a fiduciary trustee are not. But a unanimous panel held that a former Cal Micro Inc. executive isn't subject to that exception and wiped clean $1.3 million in debt.