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Duncan v. Smith Turf & Irrigation, LLC (In re Duncan) (Case No. 02-00196; A.P. No. 06-06022) 10/25/2006

The Debtor filed a Complaint seeking a declaration that any personal obligation he may have to pay amounts owed by his company, Duncan Irrigation, Inc., to a creditor was discharged in his bankruptcy case.  The Court held that the Debtor's personal guaranty of his company's debt to a creditor was not extinguished by the discharge order in the Debtor's Chapter 7 filing because: (1) credit creating the subject debt was extended to the company post-petition; (2) the Bankruptcy Code does not invalidate guarantees; and (3) the default occurred post-petition.  Thus, the debt created by the Debtor's guaranty was not a contingent debt extinguished by his previous Chapter 7 filing.

Date: 
Wednesday, October 25, 2006
Category: 
Discharge
Chapter: 
7