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Published Massachusetts, United StatesUpdated

Bankruptcy – Default judgment – Issue preclusion

Summary by Massachusetts Lawyers Weekly
Where (1) a creditor sought a determination that her state-court judgment against a Chapter 7 debtor was excepted from discharge, (2) the bankruptcy court entered default judgment for the creditor because of discovery abuse by the debtor and her counsel, and (3) the debtor then filed a Chapter 13 petition, the default judgment entered against the debtor in the Chapter 7 proceeding has preclusive effect, so the debtor is estopped from objecting t…
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Massachusetts Lawyers Weekly broke the news in on Friday, April 4, 2025.
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