New 6th Circuit BAP Decision relating to State Court Judgments Effect in Bankruptcy Court

Posted on September 10, 2010. Filed under: Uncategorized |

A state court default judgment should be given collateral estoppel effect only where there is sufficient participation by the parties to meet the actually litigated requirement. Where the issue of whether the debtors conduct was willful and malicious was not actually litigated in the state court, the judgment cannot be given preclusive effect in bankruptcy court on the issue of nondischargeability. In re Phillips, 2010 WL 3271562 (6th Cir.BAP Aug 20, 2010)

John Rogers, Kentucky Bankruptcy Attorney

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