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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
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Experience:  Bankruptcy professor.
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A creditor obtained a default judgment. The judgment is based

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A creditor obtained a default judgment. The judgment is based on a fraud claim. The debtor included the judgment in his Chapter 7 filing. How would the debtor dispute the creditor's non-dischargeability claim on the fraud judgment (even if the debtor's dispute is unlikely to succeed)?
Submitted: 5 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 5 years ago.

cfortunato :

Hi JACustomer,


 

cfortunato :

The "exception to discharge" statutes are straightforward. The 19 types of debt that are excepted from discharge cannot be discharged. A debt based on fraud cannot be discharged - in the same manner that domestic obligations cannot be discharged.


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cfortunato :

If the debtor has a good reason for not showing up to court when the default judgment was issued, and if the debtor has a good defense to the fraud claim, the debtor may be able to go to court that issued the default judgment to try to have the judgment vacated.

cfortunato :

T


his is not something that can be done in the Bankruptcy court - it has to be prosecuted in the court that issued the judgment.

cfortunato :

(The "T" belongs with "his" - the word should be "This" at the beginning of the last sentence.)


 

cfortunato and other Bankruptcy Law Specialists are ready to help you
Customer: replied 5 years ago.
If a creditor has a judgment based on a fraud claim, is his claim automatically protected, or must he file some sort of motion or other filing to protect his claim from discharge?
Expert:  cfortunato replied 5 years ago.
To have his claim determined to be non-dischargeable, the creditor must file the "4007 Determination of Dischargeability" motion with the Bankruptcy court.
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