If the defendant is an individual, certain types of debts are not eligible for discharge in the bankruptcy case. Pursuant to the Bankruptcy Code, any debt for willful and malicious injury by the debtor to another entity is excepted from discharge in the bankruptcy proceeding.
Plaintiffs in employment discrimination cases have been successful in persuading bankruptcy courts that their debts are nondischargeable, based upon jury findings that defendants caused willful and malicious injury, or when the jury awarded punitive damages requiring a finding of willful or malicious intent. If, however, you have not had the benefit of any pre-bankruptcy proceeding to obtain a finding of intentional willful and malicious injury against the defendant/debtor, you are unfortunately much less likely to have the bankruptcy courts consider the debt created by your case nondischargeable.
A plaintiff/creditor or judgment creditor may file a complaint in the bankruptcy court asking the court to determine whether the debt is dischargeable. You must act promptly to meet the bankruptcy court's short deadlines to initiate a complaint based upon willful or malicious injury, false pretenses, false representation, fraud, or fraud while acting in a fiduciary capacity.