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DISCHARGE OF BANKRUPT - Debts not released by discharge - Debts arising from fraud, misconduct, or breach of fiduciary duty

Monday, February 27, 2017 @ 8:56 AM  

Appeal by the defendant from a decision finding that her debt to the respondent survived her discharge from bankruptcy. The parties were former spouses. Shortly before leaving the relationship, the appellant withdrew $157,000 from a joint line of credit. The respondent sued for reimbursement and was awarded judgment in the amount of $157,000. The respondent had not pleaded misappropriation or breach of a fiduciary duty in the action. The appellant then made an assignment in bankruptcy. The chambers judge held the failure to plead a case,...