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Schnitzel, Inc. v. Sorensen

Summarizing by Bradley Pearce

Fatima v. Stern

Case Type:
Consumer
Case Status:
Affirmed
Citation:
BAP No. CC-17-1235-LSKu (9th Circuit, May 29,2018) Published
Tag(s):
Ruling:
A judgment entered agains the debtor for intentional misrepresentation before the commencement of her Chapter 7 bankruptcy case was sufficient to render the judgment debt nondischargeable under section 523(a)(2) and (a)(6).
Procedural context:
In nondischargeability litigation, the bankruptcy court struck the debtor's answer as a sanction for the debtor's failure to make initial disclosures as required by Fed. R. Bankr. P. 7026. The bankruptcy court then entered default judgment against the debtor.
Facts:
The appellant, January Stern, sued Leyla Fatima in state court for intentional misrepresentation. Fatima failed to show up for her deposition and at a sanctions hearing. The state court granted Stern her claimed damages and discovery sanctions. Fatima then filed a Chapter 7 bankruptcy case. That case was dismissed when Fatima failed to attend her section 341 meeting. Fatima filed a new Chapter 7 petition, and Stern filed an adversary proceeding seeking that the judgment debt be determined to be nondischargeable.
Judge(s):
LAFFERTY, SPRAKER, and KURTZ, Bankruptcy Judges

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