Dold v. Rainbows United, Inc. (In re Rainbows United, Inc.)

ORDER GRANTING DEFENDANT’S MOTION TO DISMISS

Robert E. Nugent, United States Chief Bankruptcy Judge

When Rainbows United’s chapter 11 plan was confirmed, its confirmation order discharged “any debt” that Rainbows had incurred up to that time, no matter whether the holders of those debts had filed proofs of claim, the claims had been allowed, or the claimants had accepted the plan.1 The Bankruptcy Code defines “debt” as “liability on a claim” and “claim” as a “right to payment,” one that can be, among other things, merely contingent.2 A contingent claim arises at the time the conduct that causes…