(Bankr. W.D. Ky. Mar. 1, 2018)
The bankruptcy court denies the debtor’s motion for judgment on the pleadings. The plaintiff commenced a state court action prior to the bankruptcy that asserted claims against the debtor, including fraud. The debtor argued that the plaintiff’s non-dischargeability claims were barred by res judicata, as the Chapter 13 plan had already been confirmed. The court notes that there was no express provision in the plan that provided the plaintiff’s claims were deemed dischargeable. Further, the debtor’s arguments as to the merits of the underlying claim should be asserted in the state court action and would not defeat the non-dischargeability claims at this stage. The court holds the adversary proceeding in abeyance so the state court action can proceed. Opinion below.
Attorney for Debtor: Joseph S. Elder, II
Attorney for Creditor: Willam R. Noelker
Author: Matt Lindblom