Crowe Dunlevy Secures Summary Judgment Preserving $1 Million Non-Dischargeable Judgment

Crowe Dunlevy successfully represented creditors in a Chapter 7 bankruptcy adversary proceeding involving efforts by a judgment debtor to discharge a long-standing debt arising from a multi-million-dollar fraud scheme. The Firm previously obtained a substantial judgment against the debtor and later negotiated an agreed judgment expressly recognizing that a reduced $1 million obligation would be non-dischargeable in bankruptcy. After the debtor filed a second Chapter 7 case, the Firm initiated adversary proceedings seeking confirmation that the debt remained non-dischargeable. The bankruptcy court granted summary judgment in favor of the Firm’s clients, agreeing that the debt could not be discharged and reaffirming the continuing enforceability of the judgment. The ruling preserved the clients’ rights to collect on the obligation despite multiple bankruptcy filings and brought significant clarity to a dispute spanning more than two decades.