In re Barbara Wigley

Case Type:
Case Status:
18-6027 (8th Circuit, Sep 25,2020) Published
Without referring to the Rooker-Feldman doctrine or any type of preclusion doctrine, the Bankruptcy Appellate Panel affirmed the bankruptcy court's holding that a state court judgment, which held the debtor jointly and severally liable with her non-debtor spouse for certain fraudulent transfers, was nondischargeable debt under 11 U.S.C. § 523(a)(2)(A). The BAP rejected the debtor's arguments that § 523(a)(2)(A) required evidence of extrinsic fraud and that her "rehabilitative conduct" somehow prevented a finding of actual fraud.
Procedural context:
The debtor appealed the bankruptcy court's decision that a state court judgment against the debtor for fraudulent transfers was nondischargeable under 11 U.S.C. § 523(a)(2)(A).
Barbara A. Wigley’s spouse guaranteed a real property lease from Lariat Companies, Inc. (Lariat). As so often happens, litigation ensued. Barbara A. Wigley, the debtor, was found jointly and severally liable with her spouse to Lariat in state court for fraudulent transfers. The judgment against Wigley was based on fraudulent transfers from her spouse. Lariat filed a complaint to have its claim against Wigley excepted from discharge under § 523(a)(2)(A).
NAIL,SHODEEN,and DOW,BankruptcyJudges

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