08/18/2026
A Chapter 13 debtor sold her condo without court approval, and her case ended up with a dismissal and a ban against refiling. That's until the Fourth Circuit stepped in.
In Sugar v. Burnett, the court held that the bankruptcy court failed to consider all of the circumstances, including the debtor's good-faith reliance on her counsel's advice. On remand, the debtor received a full discharge while her former attorney faced sanctions and disciplinary review for the erroneous advice that started the whole mess.
Read the important implications of this case for those dealing with bankruptcy in this analysis by Director Alon Nager at https://askfrost.com/news/from-bad-faith-to-full-discharge