While most debts can generally be discharged by filing a bankruptcy case, certain debts are excepted from discharge. Sexual harassment, Breach of Contract, and Malicious Prosecution judgments may be excepted from discharge pursuant to 11 U.S.C. §523(a)(6), which excepts debts “for willful and malicious injury by the debtor to another entity or to the property of another entity.” Also there are many other options for Creditors to pursue debtors that try and use the bankruptcy court to discharge debts.
In a recent UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT ruling,
“James Arden appeals a bankruptcy court judgment holding that his debt to Martina Silas is not dischargeable. The debt is from Silas’s successful lawsuit against Arden for malicious prosecution in California state court. Arden tried to have the damages he owed discharged in bankruptcy, but the bankruptcy code does not allow the discharge of debts “for willful and malicious injury.” 11 U.S.C. § 523(a)(6). The bankruptcy court concluded that Arden’s malicious prosecution of Silas caused such an injury. We affirm.”