Bankr. No.:
96-50074
Adv. No.:
96-5015
Chapter:
7
Date of Decision:
March 12, 1997
Issue:
Whether a creditor was entitled to summary judgment of non dischargeability for fraud where a state court had previously decided all issues relevant to the dischargeability complaint in a civil action but where the debtor now challenged the validity of the state court judgment because he alleges he was coerced to default in the state court action?
Ruling:
The creditor was entitled to a summary judgment of non dischargeability where the state court had determined all relevant issues and where the judgment was final. The state court, not the bankruptcy court, was the appropriate place for the debtor to challenge the validity of the state court default judgment. If the debtor prevailed on rehearing in state court, he could seek reconsideration of the non dischargeability judgment from the bankruptcy court.
Full Bankruptcy Court Decision:
