Posted Mar 13, 2018

In In re Chorba, 2018 WL 1219555, the Court found no basis to bar the debtor’s claims under the doctrine of res judicata due to her confirmed plan. Moreover, under Midland Funding case, the creditors’ proofs of claim, based on their right to payment on the purchased debt, can stand, subject to the claims allowance process. In that process, the debtor may challenge the claims, as she has done in her Complaint. To the extent the claims are unenforceable under state law, they are subject to disallowance under section 502(b) of the Code.