Ch. 7 Debtor Can’t Discharge Breach of Contract Claim

A Chapter 7 debtor’s obligation on a contract was not discharged in her bankruptcy case because she caused “willful and malicious” injury to the other parties to that contract (Whitcomb v. Smith (In re Smith), 2016 BL 223901, Bankr. D. Mass., 15-01079, 7/12/16).

Judge Melvin S. Hoffman of the U.S. Bankruptcy Court for the District of Massachusetts on July 12 held that the commission of a tort was not a requirement to find a debt for “willful and malicious injury” to be excepted from discharge under Bankruptcy Code Section 523(a)(6). He entered judgment in favor ...