Zutrau v. Zutrau (In re Zutrau)

July 13, 2017
Case Type:
Consumer
Case Status:
Affirmed
Citation:
BAP NO. MB 16-029 (1st Circuit, Feb 16,2017) Published
Ruling:
The Bankruptcy Appellate Panel for the First Circuit AFFIRMED the amended judgment of the bankruptcy court finding that certain debts owed to the Debtor's sister were nondischargable under section 523(a)(2)(A) and (a)(6).
Procedural context:
Eric Zutrau (the Debtor) appeals from the bankruptcy court's amended judgment determining that certain debts owed to his sister (the Appellee) were nondischargable under section 523(a)(2)(A) and (a)(6).
Facts:
Three months after the Debtor filed his chapter 7 petition, his sister (Appellee) timely filed a complaint seeking a determination that his debts to her were nondischargable under section 523(a)(2)(A) as debts arising from false representations, and under section 523(a)(6) as debts for willful and malicious injury. The Appellee filed an amended complaint alleging additional facts and to object to the Debtor's discharge under 727(a)(2)-(4). Despite the amended complaint, the bankruptcy court entered an order discharging the Debtor. The bankruptcy court later held a five-day trial at which both Appellee and Debtor testified. The bankruptcy court entered a judgment in favor of Appellee ruling that $193,000 of debt the Debtor owed to her, plus interest, was excepted from discharge. In a separate memorandum of decision, the bankruptcy court specified that $193,000, plus interest, was excepted from discharged under section 523(a)(2)(A) and of that amount, $80,000, plus interest, was also expected from discharged under section 523(a)(6). Later, the Appellee filed a motion to alter or amend the judgment pursuant to Rule 59(e) to except additional portions of debtor from discharge. After hearing, the bankruptcy court entered an order and memorandum granting the Motion to Amend.
Judge(s):
Deasy, Tester, and Finkle
Tag(s):
Summary by:      Bodie Colwell (Preti Flaherty)

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