Fleming v. Warn (In re Warn)

Memorandum of Decision

ALAN JAROSLOVSKY, Bankruptcy Judge.

This court has always considered In re Nourbakhsh, 67 F.3d 798 (9th Cir.1995), to have created a bad rule of law. In that case, the Ninth Circuit held that a default judgment is to be given collateral effect in subsequent bankruptcy discharge-ability litigation.

The exceptions to discharge crafted by Congress were intended as a compromise between the public interest in the discharge of debt and the private desire to preserve debt. Under the compromise, fraud and other types of malicious debt are to be excepted from discharge. By allowing…