Legal Question in Bankruptcy in California
Chapter 7 and non-dischargeable debt
I received a judgement from a small claims suit for non-payment of medical bills where the patient recieved the settlement but never paid the medical bills. He subsequently filed Chapter 7. Is the judgement concidered non-dischargeble debt?
Thanks,
DSW
2 Answers from Attorneys
Re: Chapter 7 and non-dischargeable debt
Generally yes, unless the debtor failed to list this debt and there were assets to be distributed to the creditors.
Re: Chapter 7 and non-dischargeable debt
The debt would be dischargeable, unless there is a timely adversary proceeding brought in the BK court against the debtor for fraud and it is litigated. The small claims judgment probably was just for breach of oral agreement so proving fraud in BK court would probably be difficult. People file BK usually because they don't have the means to pay their debts.
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