§ 523(a)

Khaligh v. Hadaegh (In re Khaligh)

Appellee creditor brought an adversary proceeding against appellant bankruptcy debtor alleging that the creditor's arbitration award against the debtor for defamation was not dischargeable based on willful and malicious injury under 11 U.S.C. § 523(a)(6). The debtor appealed the order of the U.S. Bankruptcy Court for the Central District of California which granted summary judgment to the creditor based on issue preclusion.
Ruling: 
Creditor's arbitration award against the debtor for defamation was deemed nondichargeable since the arbitration satisfied the requirements of an adjudicated finding of willfull and malicious injury.
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Bank Calumet v. Whiters (In re Whiters)

Plaintiff bank filed an adversary proceeding against defendant, a chapter 7 debtor, seeking a determination that all, or a portion of, its claim against debtor was excepted from discharge under 11 U.S.C. § 523(a)(4) and (a)(6).
Ruling: 
Debt related to refinancing loan for a vehicle was deemed dischargeable since debtor did not act in willful manner regarding creditor interests.
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Lorenz v. American Educ. ServicesPennsylvania Higher Educ. Assistance Agency (In re Lorenz)

Appellee bankruptcy debtor brought an adversary proceeding against appellant creditor seeking a determination that the debtor's student loan debt to the creditor was dischargeable based on undue hardship under 11 U.S.C. § 523(a)(8). The creditor appealed the Bankruptcy Court for the District of Massachusetts's judgment, which discharged the debt.
Ruling: 
Judgment discharging student loan debt based on undue hardship was reversed because the debtor had not demonstrated a financial inability to repay when considering the income of the debtor's household, which included the debtor's domestic partner.
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Southard v. Educ. Credit Mgmt. Corp. (In re Southard)

Plaintiff, a chapter 7 debtor, sought a discharge of his educational loans pursuant to 11 U.S.C. § 523(a)(8). Defendant was the creditor.
Ruling: 
Debtor was not granted an undue hardship discharge of the debtor's student loans since the debtor failed to prove that the debtor was living a minimal lifestyle without unnecessary expenses.
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Tucker v. Turkey Creek Ltd. Liab. Co.

Appellant chapter 7 debtor challenged a decision of the bankruptcy court, which held that the debtor was collaterally estopped from relitigating the issue of whether debt owed to appellee creditor was nondischargeable under 11 U.S.C. § 523(a)(2)(A) and (a)(6).
Ruling: 
Court held that state court judgment did not collaterally estop debtor from challenging debt nondischargeability since constructive knowledge of falsity was not sufficient to support nondischargeability finding.
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Mellor v. Washuta (In re Mellor)

Plaintiff debtor filed an adversary proceeding against defendant, his former spouse, to determine the dischargeability pursuant to 11 U.S.C. § 523(a)(5) of attorney fees and costs incurred in connection with his divorce and owed to his former spouse. The issue was whether the fees were in the nature of alimony or child support.
Ruling: 
Attorney fees and costs related to a divorce and owed to debtor's former spouse were nondischargeable since they were related to child support issues.
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In re Bakker

Defendant debtors, a husband and a wife, sought to discharge debt owed to plaintiff supplier. The supplier challenged the dischargeability of debt under 11 U.S.C. §§ 523(a)(2), 727(a)(4)(A), (a)(4)(C), (a)(5) and (a)(7).
Ruling: 
Debt owed to a supplier was dischargeable since the supplier had failed to show fraud by the debtors.
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Merritt v. Rizzo (In re Rizzo)

In defendant debtor's chapter 11 proceeding, plaintiff creditor filed an adversary complaint against the debtor alleging that the state court defamation judgment the creditor had obtained against the debtor was non-dischargeable under 11 U.S.C. § 523(a)(6). The matter was tried before the court.
Ruling: 
Court held that a defamation judgment against the debtor was dischargeable since the debtor believed the debtor's statement was true and thus did not inflict a willful and malicious injury.
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Hydro Partners LLC v. Gilberti (In re Gilberti)

Plaintiff creditor sued defendant debtor. Count I alleged that the debtor was not entitled to discharge pursuant to 11 U.S.C. § 727(a)(4). Count II alleged that the debtor was not entitled to a discharge pursuant to 11 U.S.C. § 727(a)(2)(B). Count III asserted that the debt was excepted from discharge pursuant to 11 U.S.C. § 523(a)(2). The creditor moved for summary judgment. The debtor cross-moved for summary judgment on Count I.
Ruling: 
Debt was deemed nondischargeable since state court judgment satisfied elements of section 523(a)(2).
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Gilbane Bldg. Co. v. Air Sys. (In re Encompass Servs. Corp.)

After the debtors' chapter 11 plan was confirmed, plaintiff contractor brought an adversary proceeding against defendant purchaser, seeking a declaration that the debtors'assignment of a subcontract to the purchaser was invalid and remained in the estate, and seeking an injunction against the purchaser from further prosecuting the subcontract in state court. The parties cross- moved for summary judgment; the purchaser moved for abstention.
Ruling: 
Court ruled that it did not have jurisdiction over an action involving the assigment of a subcontract since the subcontract was created independent of the bankruptcy and did not impact postconfirmation distributions to creditors.
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