Griffin v. Wardrobe, No. 07-16635
U.S. 9th Circuit Court of Appeals, March 16, 2009
In an action to declare a state judgment for fraud
non-dischargeable in bankruptcy, summary judgment for
Plaintiff is reversed, where the state court improperly
allowed Plaintiff to amend her complaint in violation of
the automatic stay under the Bankruptcy Code. The stay
had been lifted for the sole purpose of the Movant
pursuing the Debtor’s bond.
Lockerby v. Sierra, No. 06-15928
U.S. 9th Circuit Court of Appeals, August
07, 2008
In the bankruptcy context, an intentional breach of
contract cannot give rise to nondischargeability under
11 U.S.C. section 523(a)(6) unless it is accompanied by
conduct that constitutes a tort under state law.
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CREDITOR WITH
NONDISCHARGEABLE DEBT CAN COLLECT INTEREST FOLLOWING
CHAPTER 13 DISCHARGE In re Foster, ___ F.3d
___ (9th Cir. 2003) – Feb. 8, 2003 Debtor's chapter 13
plan provided for full payment of delinquent
non-dischargeable child support. Debtor completed the plan
and was granted a discharge. Subsequently, Ventura County
District Attorney went after debtor for the accumulated
interest that was not paid through the plan. Held, plan
could not provide for payment of interest, and creditor
could collect unpaid interest following discharge. This is
the majority rule.
A claim for post-petition
interest on a debt not dischargeable in Chapter 13 under 11
U.S.C. § 1328(a) is not part of the bankruptcy estate because
such unmatured interest was not part of the debt as of the
date of filing the petition. Thus, a creditor cannot insist on
interest being paid through the plan. And, the Code does not
explicitly prohibit collection of post-petition interest after
a debtor completes a confirmed chapter 13 plan.
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