Judge Katharine M. Samson, United States Bankruptcy Judge.
Before the Court is the Certification and Motion for Entry of Discharge (Dkt. No. 69) filed by Catherine J. Pacher and Notice of Objection (Dkt. No. 72) filed by Simone J. Simone and Response (Dkt. No. 75) filed by Pacher. The Court held a hearing on the motion on March 3, 2016. Dkt. No. 76. As set forth below, the non-dischargeable judgment obtained by Simone against Pacher in one of Pacher's prior bankruptcy cases is not discharged in the instant case.
The Court has jurisdiction over the parties to and the subject matter of this proceeding pursuant to 28 U.S.C. § 1334. This matter is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(A), (I), & (O).
Catherine J. Pacher first filed for bankruptcy relief in this Court in 1991, when she filed for Chapter 7 relief. In re Rogers-Pacher, No. 91-07749-ERG (Bankr. S.D. Miss. filed Mar. 21, 1991). Pacher next filed for Chapter 7 relief in 2000. In re Pacher, No. 00-55224-ERG (Bankr.S.D. Miss. filed Dec. 1, 2000). In the 2000 bankruptcy, creditor Simone J. Simone filed a complaint objecting to discharge of debt related to a default judgment Simone obtained against Pacher in the County Court of Harrison County, Mississippi. Simone v. Pacher (In re Pacher), No. 01-05083-ERG (Bankr.S.D. Miss. filed May 31, 2001). The adversary complaint resulted in an agreed judgment which stated that the debt owed by Pacher to Simone was nondischargeable "pursuant to § 523 and § 727 of the Bankruptcy Code." Dkt. No. 72-3 at 1. On October 28, 2008, Simone renewed her judgment against Pacher in the amount of $39,759.73 plus $9,953.24 in accrued interest. Dkt. No. 72-2 at 1. Pacher filed for Chapter 13 relief in 2008. In re Pacher, No. 08-51542-NPO (Bankr. S.D. Miss. filed Sept. 9, 2008). While Pacher received a discharge in her 1991 and 2000 cases, the 2008 case was dismissed for nonpayment of her Chapter 13 Plan before discharge.
Pacher filed the current petition for Chapter 13 relief on October 26, 2010. Dkt. No. 1. On January 5, 2011, Simone filed a proof of claim
The question before the Court is how to apply Simone's prior agreed judgment of nondischargeability in this case. In responding to Simone's objection, Pacher argues (1) no order exists in the current case mandating different treatment of Simone's debt from other unsecured creditors and (2) Simone has not argued any reason why this debt should not be discharged. Dkt. No. 75 at 1. At the hearing, Pacher also argued (3) the Chapter 7 and Chapter 13 discharges are not congruent and that this judgment, while not dischargeable in a Chapter 7, was based on conduct that would allow the debt to be dischargeable in a Chapter 13 and (4) Simone had not kept accurate payment records
"In general, a determination of nondischargeability in one bankruptcy case bars redetermination of that issue in a subsequent bankruptcy case." Bankr. Recovery Network v. Garcia (In re Garcia), 313 B.R. 307, 310 (9th Cir. BAP 2004); see also Swate v. Hartwell (In re Swate), 99 F.3d 1282, 1287-88 (5th Cir.1996) (holding that where nature of obligation has not changed from one bankruptcy to the next, res judicata bars relitigation of obligation's nondischargeability); Royal Am. Oil & Gas Co. v. Szafranski (In re Szafranski), 147 B.R. 976, 989 (Bankr.N.D.Okla.1992) (holding that debtor could not lead "his creditor into the tangle of multiple bankruptcies, and ... use successive discharges so as to close a trap on the tired and unwary but basically innocent creditor").
A new adversary proceeding is not required to enforce a prior judgment of nondischargeability. See In re Szafranski, 147 B.R. at 983-88 (discussing history of prior requirement that creditor take some affirmative action to enforce prior judgment of nondischargeability under Bankruptcy Act of 1978 and Bankruptcy Code and finding that no affirmative action is required). And even if an adversary proceeding were required, the Court finds that "no purpose would be served by insisting on technically correct procedure at this late date" when the parties "argued the merits of their positions" at a hearing related to the dischargeability of Pacher's debt to Simone. See In re Gee, 124 B.R. 586, 590 (Bankr.N.D.Okla.1991). In this case, the parties were also given an additional opportunity to brief their positions after the hearing but declined to do so.
Because it is Pacher who wishes to change the status quo and treat Simone's claim differently in this bankruptcy compared to her prior bankruptcy, Pacher, as the movant, bears the burden of proof. The Court first looks to see if the prior judgment should be enforced in this case. The principles of res judicata apply if the following conditions are met: "(1) the parties
Further, because no affirmative action is required on the part of the creditor to seek enforcement of a prior judgment of nondischargeability, Simone's argument cannot be untimely. See In re Szafranski, 147 B.R. at 989 (holding that if a creditor chose to file a new adversary proceeding, it would "not [be] subject to [the] deadlines under [Federal Rules of Bankruptcy Procedure] 4007(c) [or] 9006(b)(3)").
The discharge in a Chapter 13 (sometimes colloquially referred to as a "super discharge") discharges some debts that would be nondischargeable under Section 523 in a Chapter 7 case. Allegra Network, LLC v. Ruth (In re Ruth), Bankr. No. 10-50184, 2013 WL 139265, at *7 (Bankr. E.D.Tex. Jan. 10, 2013); see also 11 U.S.C. § 1328(a)(2) (2005). But the Court has found no case (and Pacher has submitted none) holding that the distinction between the discharges in Chapters 7 and 13 is relevant to the validity of a prior judgment of nondischargeability.