Brian Scholz was involved in an automobile collision with a person insured by The Travelers Insurance Company. At the time, Scholz was cited for, and pled no contest to, a criminal charge of driving under the influence of alcohol arising out of the accident. The Travelers paid its insured $4,303.68 and was subrogated to the rights of its insured against Scholz. Subsequently, The Travelers filed a civil action against Scholz to recover the amount it had paid, and a default judgment was entered against Scholz. Eleven months later, Scholz sought relief from the bankruptcy court by filing a voluntary petition under Chapter 7. One of the questions in the bankruptcy proceeding was whether the debt owing to The Travelers was nondischargeable.
Is the debt dischargeable?

  • CreatedJuly 16, 2014
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