Hurlbert v. Drake (In Re Drake)

MEMORANDUM DECISION FINDINGS OF FACT AND CONCLUSIONS OF LAW

M. S. YOUNG, Bankruptcy Judge.

Because both of the above entitled proceedings involve essentially the same factual and legal problems, I am combining them in this Memorandum Opinion and Decision. In both cases the plaintiffs seek to have certain indebtedness owed to them by defendants declared nondischargeable obligations pursuant to Section 523(a)(2) and (4) of the Bankruptcy Code.

Defendant was engaged in a business under the name of Automotive Liquidators. In this business he received motor vehicles on consignment from private…