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Cohen v. Abramowitz

Citations: 549 B.R. 316; 2016 U.S. Dist. LEXIS 15045; 2016 WL 463790Docket: Civ. No. 15-751; Bankr. No. 14-23098

Court: District Court, W.D. Pennsylvania; February 7, 2016; Federal District Court

Narrative Opinion Summary

This case involves an appeal by a creditor, Cohen, against the bankruptcy court's denial of her motion for relief from a Discharge Order under Federal Rules of Bankruptcy Procedure 9024 and Civil Procedure 60(b). The primary legal issues concern the discharge of debts under 11 U.S.C. § 727, objections to discharge, and the dischargeability of certain debts under 11 U.S.C. § 523(a). Cohen, a creditor of Abramowitz, challenged the dischargeability of a judgment and sought relief from the Discharge Order, arguing Abramowitz consented to proceedings limited to his insurance coverage. The bankruptcy court denied Cohen’s motions, citing procedural deficiencies and lack of timely action, and found no extraordinary circumstances warranting relief. Cohen's appeal contends the bankruptcy court abused its discretion, but the court affirmed the denial, emphasizing adherence to procedural rules and the lack of consent from Abramowitz for Cohen's broader claims. The court's decision underscores the distinction between objections to discharge and challenges to dischargeability, emphasizing the procedural requirements for each under the Bankruptcy Rules.

Legal Issues Addressed

Consent to Proceedings in Bankruptcy

Application: Abramowitz did not consent to Cohen's motions that sought to impose personal liability, as he only agreed to proceedings limited to insurance coverage.

Reasoning: The court noted Cohen's attempts to seek relief from the automatic stay to pursue the 8424 Action, which were denied due to procedural issues, but it seemed the parties might have reached an agreement regarding the action, though no formal consent motion was filed.

Discharge of Debts in Bankruptcy under 11 U.S.C. 524(a)(1)

Application: Cohen challenged the dischargeability of the 13418 Judgment but failed to demonstrate that Abramowitz’s insurance would cover the debt, and the court found no extraordinary circumstances to grant relief.

Reasoning: A bankruptcy discharge eliminates personal liability for debts (11 U.S.C. 524(a)(1)), and Cohen did not prove that Abramowitz’s insurance would cover the 13418 Judgment.

Objections to Discharge and Dischargeability under Bankruptcy Rules 4004 and 4007

Application: Cohen's motions failed due to procedural errors and untimeliness, as she did not file a proper adversary proceeding to challenge the dischargeability of debts under 11 U.S.C. § 523(a).

Reasoning: To contest a debt's dischargeability, a creditor must file a complaint in an adversary proceeding, citing specific categories under 11 U.S.C. § 523(a)(1-19).

Relief from Judgment under Federal Rules of Bankruptcy Procedure 9024 and Civil Procedure 60(b)

Application: Cohen's motion for relief from the Discharge Order was denied as she failed to demonstrate extraordinary circumstances under Rule 60(b)(6), and the court found no abuse of discretion.

Reasoning: The bankruptcy court's denial of Cohen’s Bankruptcy Rule 9024 Motion for relief from the Discharge Order was deemed appropriate.