(Bankr. S.D. Ind. Mar. 2, 2015)
The bankruptcy court enters a nondischargeability judgment in favor of the creditor. The court first holds that a prior state court judgment does not have preclusive effect as to nondischargeability under § 523(a)(4) and (6), in part because it was entered as a discovery sanction rather than on the merits. The court ultimately holds that debts arising from converted checks and larceny committed with respect to a loan check are nondischargeable, while other debts were dischargeable. Attorney fees arising out of the debtor’s embezzlement and larceny were also nondischargeable. Opinion below.
Author: Matt Lindblom