Northern District

Trustee was entitled to recover the value of wine defendant purchased from debtor whodefrauded purchasers through a Ponzi scheme. (Bankr. N.D. Cal.)

Debtor's discharge did not bar cross-claims asserted as setoffs as debtor had not disputed thevalidity of judgment and had not yet attempted to undermine the merits of the cross-claims.(Bankr. N.D. Cal.)HOLDINGS; [1]-A judgment creditor's collection efforts against a third party did not appear, at the earlystages of the pending litigation, to violate a debtor's discharge injunction because a sole spouse's Chapter7 discharge generally insulated pre-petition community property from discharged pre-petitioncommunity claims, and the creditor's declaratory relief request was to determine the bonafides of thedebtor's divorce, and if the divorce was a sham; [2]-The debtor's discharge did not bar cross-claimsasserted in pending state litigation to the extent they were asserted as setoffs under 11 U.S.C. § 553because the debtor had not disputed the validity of a judgment held by the creditor asserting the crossclaims and had not yet attempted to undermine the merits of the cross-claims.Fu, In re, 2020 Bankr. LEXIS 2514 (Bankr. N.D. Cal. September 25, 2020) (Novack, B.J.).

Proof of claim was unenforceable against the debtor as it was procedurally and substantivelyunconscionable under local law. (Bankr. N.D. Cal.)

Debt was nondischargeable where debtor's representations were knowingly false and made toforestall creditor's motion to withdraw as debtor’s counsel in state court case. (Bankr. N.D. Cal.)