Bankr. L. Rep. P 67,606 the National Collection Agency, Inc. v. Kenneth Frank Trahan

EUGENE A. WRIGHT, Circuit Judge:

National appeals from a judgment declaring Trahan’s debt to National dischargeable in bankruptcy. We affirm. FACTS

Trahan was required by the State of California to give security ensuring his payment of sales tax. A surety contracted with Trahan to meet the requirement by posting a $2,000 bond with the State. After Trahan failed to pay the tax, National, the surety’s assignee, brought a state court action against Trahan to recover the $2,000 the surety had paid to the State.

Trahan petitioned for voluntary bankruptcy and subsequently sought a declaration from the…