Bankr. L. Rep. P 68,280 in the Matter of Nelson Lewis Gross, AKA Nelson L. Gross, AKA Lewis Gross, Bankrupt. John O. Miller v. Nelson Lewis Gross

This is an appeal from the district court’s affirmation of an order of the bankruptcy court declaring certain debts nondischargeable. We affirm. This bankruptcy proceeding was instituted prior to October 1, 1979, the effective date of the Bankruptcy Reform Act, and is, therefore, governed by the Bankruptcy Act in force prior to that date. See Pub.L. No. 95-598, 92 Stat. 2682, 2683. Our opinion, therefore, relates only to the prior Bankruptcy Act.

Miller had obtained two judgments in state court against Gross in the amounts of $103,000 and $6,500 several years before Gross filed his petition in bankruptcy. Gross listed the judgments as scheduled debts in his bankruptcy petition. Miller instituted a proceeding under section 17(c)(2) of the Bankruptcy Act, 11 U.S.C. § 35 (c)(2) to declare the debts nondischargeable, on the grounds that they were debts encompassed within the meaning of section 17(a)(2), 11 U.S.C. § 35 (a)(2). That section provides in pertinent part:

Gross, who contends the debts are dischargeable, first makes the peculiar argument that the debts are not “provable” and thus the bankruptcy court had no jurisdiction under section 17 of the Bankruptcy Act to declare…