Opinion ID: 2791704
Heading Depth: 1
Heading Rank: 1

Heading: issues

Text: This appeal concerns Wilson’s assertions that debt owed to him by the Debtor should be excepted from the Debtor’s discharge under § 523 of Title 11 of the United States Code (Bankruptcy Code) or the Debtor’s discharge should be denied under Bankruptcy Code § 727. Therefore, we consider whether the Debtor owes a debt to Wilson. To determine whether a debt exists, we must decide whether: (1) two contracts between the Debtor and Wilson were void as unconscionable; (2) Wilson lost an investment he made in the Debtor or his career; and (3) Wilson has asserted any other basis for a debt. We consider Wilson’s arguments that: (1) the Debtor waived an unconscionability argument for failure to raise it as an affirmative defense; and (2) assertion of unconscionability is barred by the Virginia statute of limitations. In addition, we consider the propriety of the bankruptcy court’s ruling that the Debtor’s discharge should not be denied under §§ 727(a)(2), (a)(3) and (a)(4). We hold that there is no basis upon which to rule that the Debtor owed a debt to Wilson. The bankruptcy court properly decided that Wilson had no cause of action under §523. Likewise, there was no basis upon which to deny the Debtor’s discharge under § 727. 1 The Honorable Arthur B. Federman, Chief Judge, United States Bankruptcy Court for the Western District of Missouri. 2