Northwestern Mutual Life Insurance v. Prochnow

The following memorandum was filed March 31, 1936:

Fritz, J.

(on motion for rehearing). On his motion for a rehearing, the respondent contends that the result of the decision in this case is to hold as a matter of law that the provable debts of the bankrupt become nonexistent as a result of the discharge in bankruptcy, and that this is contrary to the federal authorities on this subject. Respondent cites Zavelo v. Reeves, 227 U. S. 625, 33 Sup. Ct. 365, and other decisions, to the effect that the discharge destroys the remedy but not the indebtedness. On the other hand, the appellants assert…