Khounani v. Premier Capital, LLC (In re Khounani)
- Case Type:
- Consumer
- Case Status:
- Affirmed
- Citation:
- BAP No. 16-1233-NTaL (9th Circuit, Feb 02,2017) Not Published
- Tag(s):
-
- Ruling:
- Section 523(a)(10) provides that any claim existing when a debtor waives or is denied a discharge in a case will be nondischargeable in a subsequent case. If a claim is nondischargeable under section 523(a)(10), the nondischargeable claim includes all costs, interest and attorneys' fees that are awarded on the claim after the closing of the prior case.
- Procedural context:
- Appeal to the BAP from order granting summary judgment that the entirety of the creditor's claim was nondischargeable pursuant to section 523(a)(10) of the Bankruptcy Code.
- Facts:
- A debtor filed a chapter 7 case and was denied a discharge. A creditor owed $86,000 on a contract claim at the time of the case subsequently sued the debtor and obtained a judgment for $133,000, which was inclusive of costs, interest and attorneys' fees. The debtor filed a second chapter 7 case several years later, by which time the claim had grown to $236,000 because of post-judgment interest. The creditor moved for summary judgment that the entirety of the claim was nondischargeable pursuant to section 523(a)(10). The debtor argued that only $86,000 should be nondischargeable because that was the amount owed when he was denied a discharge in the prior case. The BAP disagreed, holding that the definition of "claim" is very broad. A claim amount is not static and the subsequent judgment and post-judgment interest are simply the mature version of the claim that existed based upon the contract.
- Judge(s):
- Novack (sitting by designation), Taylor and Lafferty
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