Ford v. Darracott (In Re Ford)

OPINION

WILLIAM L. NORTON, Jr., Bankruptcy Judge.

Plaintiff-debtors in this adversary proceeding have requested a determination that certain debts, discharged as a result of a Chapter 7 bankruptcy, could not continue to give rise to a cause of action filed as a counterclaim by defendant-creditor. While this Court holds that the discharge of debts under Chapter 7 of the Bankruptcy Reform Act prohibits the creditor from engaging in collection efforts or seeking a judgment on those debts against the debtors in any later action, such debts may be used by the creditor defensively as a setoff of his…