Wilson v. Allen (In re Allen)

(S.D. Ind. Sep. 15, 2014)

The district court affirms the bankruptcy court’s judgment in favor of the debtor in a non-dischargeability action. The plaintiff hired the debtor to perform work on her vehicle and placed the debtor’s name on the title as a lienholder. The debtor was then somehow placed on the title as the owner, and the debtor sold the vehicle to a third party. The plaintiff sued the debtor in state court and obtained a judgment against him for $5,000. The debtor then paid the plaintiff $800 on the judgment, which was the amount she had paid on the purchase price for the vehicle. The bankruptcy court found that there was therefore no debt remaining that was non-dischargeable. The district court affirmed, finding the plaintiff failed to satisfy her burden of proving a non-dischargeable debt. Opinion below.

2014-09-15 – in re allen