Esposito v. Hartley (In re Hartley), No. 09-37770, Adv. Pro. No. 10-9055, 2011 BL 257709 (Bankr. S.D.N.Y. Oct. 5, 2011) The United States Bankruptcy Court for the Southern District of New York granted a plaintiff’s request to except from discharge a judgment obtained against a corporation owned and operated by debtor-defendants. The bankruptcy court held that because defendants dissolved their corporation without giving plaintiff notice and an opportunity to enforce her judgment, defendants were jointly and severally liable for the judgment. The bankruptcy court also ruled that the judgment was a non-dischargeable debt pursuant to 11 U.S.C. § 523(a)(2)(A) for property obtained by false pretenses and pursuant to 11 U.S.C. § 523(a)(3)based on defendants’ failure to list plaintiff or schedule her debt in their bankruptcy petition.
Plaintiff’s Judgment and Defendants’ Bankruptcy
Defendants Jointly and Severally Liable
Property Obtained by False Pretenses
Failure to Provide Notice of Bankruptcy Proceeding under § 523(a)(3)
Bankruptcy Court Awards Plaintiff Summary Judgment
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