- Case Type:
- Case Status:
- BAP No. CC-17-1235-LSKu (9th Circuit, May 29,2018) Published
- 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.
- 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.
- LAFFERTY, SPRAKER, and KURTZ, Bankruptcy Judges
Schnitzel, Inc. v. Sorensen
Summarizing by Bradley Pearce
2699 in the system
7 Being Processed