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.
File:
Judge:
Date:
Wednesday, October 25, 2006
Category:
Discharge
Chapter:
7