Moody v. Muller (In re Moody)
- Citation:
- United States Court of Appeals for the Fifth Circuit, No. 10-30946, June 17, 2011 (unpublished, per curiam opinion)
- Tag(s):
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- Ruling:
- The appellant's discharge injunction from her confirmed chapter 13 case does not protect post-petition community assets from collection efforts by her spouse's judgment creditor because her spouse's attempt to discharge his debt to the judgment creditor in his own chapter 7 case was unsuccessful, citing 11 U.S.C. 524 (a)(3) and (b).
- Procedural context:
- Appeal from a ruling by the District Court for the Eastern District of Louisiana, which affirmed the ruling of the Bankruptcy Court for the Eastern District of Louisiana.
- Facts:
- Appellee Muller obtained a judgment against Irving Moody (Mr. Moody) for failure to repay a debt. Mr. Moody filed a chapter 7 case, but the bankruptcy court denied him a discharge of his debt to Muller. Appellant Pellie Moody (Mrs. Moody) then filed a personal chapter 13 case. The bankruptcy court allowed her to include the debt to Muller in her chapter 13 plan, which was confirmed over Muller's objection. Years pass. Muller resumed efforts to collect on the debt by garnishing Mr. Moody's wages. Mrs. Moody re-opened her chapter 13 case and moved to enforce the discharge injunction against Muller to stop the garnishment of her husband's wages. The bankruptcy court determined that the debt to Muller survived against after-acquired community property, e.g., wages, under 11 U.S.C. 524(b), and denied Mrs. Moody's motion. The district court affirmed the bankruptcy court's ruling.
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