23-81174, 24-96007
The Debtor seeks dismissal of the two-count adversary complaint under Fed. R. Civ. P. 12(b)(6) and 9(b). The complaint seeks a determination that the Bank’s judgment against the Debtor is nondischargeable pursuant to section 523(a)(2)(A). The Bank alleges that the Debtor committed actual fraud by (1) depositing the proceeds from the sale of jointly owned real property into a bank account owned solely by her husband in order to conceal those funds from the Bank, and (2) paying $90,000 towards her federal student loans shortly before entry of the judgment against her. In denying the motion, the Court rejected the Debtor’s argument that payment of a non-dischargeable student loan cannot support a claim under section 523(a)(2)(A) and found that the claims, which included several badges of fraud, were plead with sufficient particularity for purposes of Rule 9(b).