Case Summary:
Debtor in a Chapter 7 asset case did not name one of her creditors in her bankruptcy schedules until Debtor’s assets were fully administered and the Trustee had filed a final account. As a result of the Debtor’s late inclusion of this creditor, the Creditor was unable to file a proof of claim and share in the distribution of assets. The Creditor was pursuing an action in State court against the Debtor, which was stayed while the bankruptcy was pending. Following the Debtor’s discharge the proceedings in state court continued. The Debtor attempted to use her discharge as a defense in the resumed state court action. The state court decided that pursuant to 11 U.S.C. § 523(a)(3)(A) the debt was not discharged because the creditor was not listed in time to file a proof of claim. The Debtor then filed a motion in this court to re-open her bankruptcy case to seek contempt remedies against the creditor for pursuing the action in state court. The Debtor was essentially asking this court to determine that the debt was discharged. That issue was already decided in state court, and the doctrine of issue preclusion prevents relitigation in Bankruptcy Court. The Debtor’s motion was denied.
Statute/Rule References:
11 U.S.C. § 362 -- Automatic stay
11 U.S.C. § 523(a)(3)
11 U.S.C. § 524(a)
Key Terms:
Claims
Rooker-Feldman