Federal Mutual Insurance Co. v. Gibbs (In Re Gibbs)

MEMORANDUM OPINION AND ORDER

JOEL PELOFSKY, Bankruptcy Judge.

Ernest W. Gibbs, d/b/a Gibbs Oil company, filed a petition under Chapter 7 on August 8, 1980. In his schedules he listed an obligation to Federated Mutual Insurance Co. arising out of payment by FMI to the State of Missouri for motor fuel taxes which debtor was obligated to pay and did not. The parties have stipulated that debt- or was liable for such taxes and that FMI satisfied that liability in the sum of $20,-000.00, the full amount of its surety bond. The parties also stipulated that debtor signed the bond application which…