(Bankr. E.D. Ky. Jan. 7, 2016)
The bankruptcy court grants summary judgment in favor of the plaintiff, finding the plaintiff’s claims are non dischargeable under 11 U.S.C. § 523(a)(2)(A) and (a)(6). The plaintiff obtained a default judgment against the debtor in a Tennessee state court, in which the debtor participated until discovery. Prior to entry of the default judgment, the debtor filed bankruptcy but failed to give notice to the plaintiff. After the bankruptcy case was closed, the plaintiff learned of the bankruptcy for the first time and then filed the adversary proceeding. The court holds that § 523(a)(3) is satisfied because the plaintiff did not have timely notice of the bankruptcy filing. The court then holds that, based on the state court judgment, collateral estoppel prohibits the debtor from defending against the claims. Opinion below.
Author: Matt Lindblom