Personal Bankruptcy Information Getting Rid of Debts

6Jul/080

Claim had to be disallowed based on principles of res judicata.

A Chapter 7 trustee rebutted the prima facie validity of a proof of claim that was properly filed by the debtor’s then-estranged, now-former wife, seeking to hold the debtor liable for the same fraud in allegedly forging the wife’s signature on residential mortgage documents that underlay her fraud- based nondischargeability complaint. The wife, as part of a global settlement in the pending dissolution of marriage action, had dismissed her nondischargeability complaint with prejudice, including her request for entry of a monetary judgment liquidating the amount of the allegedly nondischargeable debt. The ex-wife’s claim against the debtor and the debtor’s fort worth bankruptcy estate was unenforceable under applicable the Illinois law of res judicata.

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