§ 523

McArdle v. Alvarez (In re Alvarez)

Plaintiff creditors moved for summary judgment against defendant debtor in their action alleging they were entitled to summary judgment on the issue of dischargeability of a debt pursuant to 11 U.S.C. § 523(a)(2)(A) and (a)(6).
Ruling: 
Debt was deemed nondischargeable since fraud and personal liability were already found in state court action.
ABI Membership is required to access the full summary of McArdle v. Alvarez (In re Alvarez). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Johnson v. Curtis (In re Curtis)

Adversary plaintiffs who each made personal short term loans to debtor with the promise of quick and dramatic profits, sought a determination of the nondischargeability of their respective debt, pursuant to 11 U.S.C. § 523(a)(2)(A). Debtor had been the victim of a long-running scheme whereby he repeatedly paid fees to European swindlers for the promise of a large commission.
Ruling: 
Debts owed to lenders were dischargeable despite debtor's omission of pertinent information since lenders failed to show they justifiably relied on the misrepresentations.
ABI Membership is required to access the full summary of Johnson v. Curtis (In re Curtis). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Sunflower Bank N.A. v. Otte (In re Otte)

Adversary plaintiff bank sought to have individual debtor's guaranty obligation be held nondischargeable under 11 U.S.C. § 523(a)(2)(B) for defaulting borrower corporation's loans. The bank claimed that the debtor had fraudulently reported the borrower's inventory. The court previously ruled the debt was not one for fraud or defalcation while acting in a fiduciary capacity that would be excepted from discharge under 11 U.S.C. § 523(a)(4).
Ruling: 
Obligation to bank was not excepted from discharge since bank failed to show an intent to defraud by debtor.
ABI Membership is required to access the full summary of Sunflower Bank N.A. v. Otte (In re Otte). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Duncan v. Duncan (In re Duncan)

Appellant estate administrator sought review of an order of the District Court for the Eastern District of Virginia, which granted summary judgment to appellee debtor in an adversary proceeding brought by the bankruptcy estate to challenge the dischargeability of a judgment debt owed by the debtor arising out of a state wrongful death action.
Ruling: 
Dischargeability of wrongful death damages award was not collaterally estopped since the judgment was based on a different legal standard than section 523(a)(6)'s willful and malicious injury standard.
ABI Membership is required to access the full summary of Duncan v. Duncan (In re Duncan). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Schmidt v. Bauer (In re Bauer)

Plaintiff creditor filed a motion for summary judgment on his action for a determination that a judgment debt based on a state court finding of conversion by defendant debtor was excepted from discharge, pursuant to 11 U.S.C.S. § 523(a)(4) and (6). The creditor alleged that the judgment established larceny or embezzlement under section 523(a)(4), and the finding of legal malice established willful and malicious injury under section 523(a)(6).
Ruling: 
State court judgments were not excepted from discharge since judgments did not establish fraudulent intent or malice or willful and malicious injury under same standard as required under section 523(a).
ABI Membership is required to access the full summary of Schmidt v. Bauer (In re Bauer). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Strong Indus. v. McKenzie (In re McKenzie)

Plaintiff creditor sought a determination that a prepetition judgment obtained by it against defendant debtor was nondischargeable pursuant to 11 U.S.C. § 523(a)(6), a provision which excepted from discharge any debt for willful and malicious injury by the debtor to another entity or the property of another entity. The creditor moved for summary judgment. Debtor did not file a response to the motion.
Ruling: 
Summary judgment based on collateral estoppel was denied since state court conversion judgment did not establish willful and malicious injury for purposes of nondischargeability claim.
ABI Membership is required to access the full summary of Strong Indus. v. McKenzie (In re McKenzie). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Highgrove LC v. Holcombe (In re Holcombe)

Plaintiff creditor filed an objection to the dischargeability of its debt pursuant to 11 U.S.C. § 523(a)(4) as a motion rather than as a complaint commencing an adversary proceeding. Defendant debtor sought to avoid defending the objection on its merits by having the motion dismissed as the wrong procedural method and having the complaint dismissed or stricken as untimely. The creditor filed motions to consolidate.
Ruling: 
Motion objecting to discharge rather than adversary proceeding gave notice to debtor and was sufficient to meet filing deadline.
ABI Membership is required to access the full summary of Highgrove LC v. Holcombe (In re Holcombe). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Smith v. Wilson (In re Wilson)

Plaintiff, defendant debtor's former spouse, filed an adversary proceeding against the debtor claiming that a deficiency balance on a motorcycle, a debt for which the former spouse was jointly responsible, should be declared a non-dischargeable debt under 11 U.S.C. § 523(a)(5) or , alternatively, 11 U.S.C. § 523(a)(15). The former spouse also alleged that the debtor should be denied his discharge under 11 U.S.C. § 727(a)(2)(A).
Ruling: 
Deficiency balance on motorcycle jointly owned by debtor and debtor's former spouse was deemed dischargeable since deficiency was not in nature of support and debtor lacked ability to pay debt.
ABI Membership is required to access the full summary of Smith v. Wilson (In re Wilson). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Shain v. Shain (In re Shain)

Plaintiff, the former spouse of defendant debtor, filed a complaint contending that attorney fees awarded to him during a custody battle between the parties were nondischargable under 11 U.S.C. § 523(a)(5) and (a)(6).
Ruling: 
Attorney fees awarded to debtor's former spouse from custody battle case was deemed nondischargeable debt.
ABI Membership is required to access the full summary of Shain v. Shain (In re Shain). Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Educ. Credit Mgmt. Corp. v. Spence

Before the court was appellant creditor's appeal of an order of the bankruptcy court, which fully discharged appellee debtor's student loan debt owed to the creditor. The creditor argued that the bankruptcy court erred by discharging the debtor's student loan because she would suffer an undue hardship if required to pay her student loan debt.
Ruling: 
Court reversed bankruptcy court by ruling that debtor had not met three elements for determining debt dischargeability due to undue hardship.
ABI Membership is required to access the full summary of Educ. Credit Mgmt. Corp. v. Spence. Please sign in if you are already an ABI member, or otherwise you may Become an ABI Member

Pages

Subscribe to § 523