Adversary Complaint to Determine Nondischargeability (11 U.S.C. § 523)

IMPORTANT: THIS IS A PREPARATION GUIDE — NOT A FILING-READY DOCUMENT

Nondischargeability complaints under 11 U.S.C. § 523(c) are subject to a strict
60-day bar date under Federal Rule of Bankruptcy Procedure 4007(c). The deadline
runs from the first date set for the § 341 meeting of creditors, not from the
actual meeting date, and is rarely extended. Review local rules and judge-specific
requirements before filing. Consult qualified bankruptcy counsel.

UNITED STATES BANKRUPTCY COURT

[____] DISTRICT OF [____]

Main Bankruptcy Case

Chapter: ☐ 7 ☐ 11 ☐ 12 ☐ 13

Case No.: [________________________________]

Adversary Proceeding

Adv. Proc. No.: [________________________________] (to be assigned)

COMPLAINT TO DETERMINE NONDISCHARGEABILITY OF DEBT

Plaintiff [CREDITOR NAME] ("Plaintiff"), by and through undersigned counsel, brings this adversary proceeding against Defendant [DEBTOR NAME] ("Defendant" or "Debtor") pursuant to 11 U.S.C. § 523 and Federal Rule of Bankruptcy Procedure 7001(6), and alleges as follows:

I. NATURE OF THE ACTION

1. This is an adversary proceeding to determine the nondischargeability of a debt owed by Defendant to Plaintiff in the approximate amount of $[________________], pursuant to 11 U.S.C. § 523(a)(2), § 523(a)(4), and/or § 523(a)(6).

2. The debt arises from [________________________________] and was obtained by false pretenses, false representations, actual fraud, fraud or defalcation while acting in a fiduciary capacity, embezzlement, larceny, and/or willful and malicious injury to Plaintiff or Plaintiff's property.

3. Plaintiff seeks a judicial determination that the debt, together with interest, costs, and (where permitted) attorneys' fees, is excepted from discharge.

II. JURISDICTION AND VENUE

4. This Court has jurisdiction over this adversary proceeding pursuant to 28 U.S.C. §§ 157 and 1334, and the standing order of reference of the United States District Court for the [____] District of [____].

5. This is a core proceeding under 28 U.S.C. § 157(b)(2)(I) (determinations as to the dischargeability of particular debts) and, to the extent applicable, § 157(b)(2)(J) (objections to discharge).

6. Plaintiff consents to the entry of final orders and judgment by this Court.

7. Venue is proper in this district under 28 U.S.C. § 1409(a) because the underlying bankruptcy case is pending in this district.

III. PARTIES

8. Plaintiff [CREDITOR NAME] is a [individual / corporation / limited liability company / partnership] with its [residence / principal place of business] at [________________________________].

9. Defendant [DEBTOR NAME] is the Debtor in the above-captioned Chapter [____] bankruptcy case, and resides or maintains a principal place of business at [________________________________].

10. At all times relevant to this Complaint, Defendant was [describe relationship to Plaintiff: borrower / officer / fiduciary / business partner / contractor / other — ________________________________].

IV. PROCEDURAL BACKGROUND

11. On [__/__/____] (the "Petition Date"), Defendant filed a voluntary petition for relief under Chapter [____] of Title 11 of the United States Code, commencing Case No. [________________________________].

12. The first date set for the meeting of creditors under 11 U.S.C. § 341(a) was [__/__/____].

13. The deadline to file a complaint objecting to the dischargeability of a debt under 11 U.S.C. § 523(c) is [__/__/____], being sixty (60) days after the first date set for the § 341 meeting, as prescribed by Federal Rule of Bankruptcy Procedure 4007(c).

14. This Complaint is filed within that deadline.

V. FACTUAL ALLEGATIONS

15. On or about [__/__/____], Plaintiff and Defendant entered into [describe transaction: loan / credit sale / investment / contract / business relationship — ________________________________].

16. In connection with that transaction, Defendant made the following representations to Plaintiff: [________________________________].

17. Defendant represented, among other things, that [________________________________].

18. In reliance on Defendant's representations, Plaintiff [provided funds / extended credit / delivered goods / rendered services / transferred property] in the amount or value of $[________________] on or about [__/__/____].

19. [________________________________]

20. [________________________________]

21. At the time Defendant made the foregoing representations, Defendant knew them to be false, or made them with reckless disregard for their truth or falsity, and intended to deceive Plaintiff.

22. As a direct and proximate result of Defendant's conduct, Plaintiff has suffered damages in an amount not less than $[________________], exclusive of interest, costs, and attorneys' fees.

VI. COUNT I — NONDISCHARGEABILITY UNDER 11 U.S.C. § 523(a)(2)(A)

(False Pretenses, False Representation, or Actual Fraud)

23. Plaintiff incorporates by reference the allegations of paragraphs 1 through 22 as though fully set forth herein.

24. Defendant made one or more material misrepresentations of fact to Plaintiff, as set forth above.

25. Defendant knew the representations were false at the time they were made, or made them with gross recklessness as to their truth.

26. Defendant made the representations with the intent to deceive Plaintiff and to induce Plaintiff to act in reliance on them.

27. Plaintiff justifiably relied on Defendant's representations. Field v. Mans, 516 U.S. 59 (1995).

28. Plaintiff suffered damages as the proximate result of its reliance on Defendant's misrepresentations.

29. The debt is therefore nondischargeable under 11 U.S.C. § 523(a)(2)(A) as a debt obtained by false pretenses, a false representation, or actual fraud, other than a statement respecting the debtor's or an insider's financial condition.

VII. COUNT II — NONDISCHARGEABILITY UNDER 11 U.S.C. § 523(a)(2)(B)

(Use of a Materially False Written Financial Statement)

30. Plaintiff incorporates by reference the allegations of paragraphs 1 through 22 as though fully set forth herein.

31. On or about [__/__/____], Defendant provided Plaintiff a written statement respecting Defendant's [or an insider's] financial condition, a copy of which is attached as Exhibit [____].

32. The written statement was materially false in that [________________________________].

33. Plaintiff reasonably relied on the written statement in extending [credit / money / property / services] to Defendant.

34. Defendant caused the written statement to be made or published with intent to deceive Plaintiff.

35. The debt is therefore nondischargeable under 11 U.S.C. § 523(a)(2)(B).

VIII. COUNT III — NONDISCHARGEABILITY UNDER 11 U.S.C. § 523(a)(4)

(Fraud or Defalcation by a Fiduciary; Embezzlement; Larceny)

36. Plaintiff incorporates by reference the allegations of paragraphs 1 through 22 as though fully set forth herein.

A. Fraud or Defalcation While Acting in a Fiduciary Capacity

37. At all relevant times, Defendant acted as a fiduciary of Plaintiff by virtue of [express trust / statutory trust / partnership / corporate officer duty / other — ________________________________].

38. Defendant committed fraud or defalcation while acting in that fiduciary capacity by [________________________________], acting with a culpable state of mind equivalent at minimum to gross recklessness. Bullock v. BankChampaign, N.A., 569 U.S. 267 (2013).

B. Embezzlement

39. In the alternative, Defendant fraudulently appropriated property of Plaintiff that had been lawfully entrusted to Defendant, namely [________________________________], and misapplied it for Defendant's own benefit.

C. Larceny

40. In the further alternative, Defendant wrongfully and with fraudulent intent took Plaintiff's property, namely [________________________________], without Plaintiff's consent.

41. The debt is therefore nondischargeable under 11 U.S.C. § 523(a)(4).

IX. COUNT IV — NONDISCHARGEABILITY UNDER 11 U.S.C. § 523(a)(6)

(Willful and Malicious Injury)

42. Plaintiff incorporates by reference the allegations of paragraphs 1 through 22 as though fully set forth herein.

43. Defendant engaged in conduct that was intended to cause injury to Plaintiff or to Plaintiff's property, specifically: [________________________________].

44. Defendant's conduct was "willful" within the meaning of § 523(a)(6) because Defendant acted with the subjective intent to cause the injury, or with a subjective belief that injury was substantially certain to result. Kawaauhau v. Geiger, 523 U.S. 57 (1998).

45. Defendant's conduct was "malicious" because it was wrongful and without just cause or excuse.

46. Plaintiff suffered injury and damages as the direct and proximate result of Defendant's willful and malicious conduct.

47. The debt is therefore nondischargeable under 11 U.S.C. § 523(a)(6).

X. DAMAGES

48. As a direct and proximate result of Defendant's conduct, Plaintiff has been damaged in an amount not less than $[________________], consisting of:

49. Plaintiff's damages are evidenced by [promissory note / invoice / judgment / contract / other — ________________________________], a true and correct copy of which is attached as Exhibit [____].

50. Plaintiff reserves the right to prove additional damages, including post-petition interest where allowable, punitive damages where provided by applicable non-bankruptcy law, and attorneys' fees where contractually or statutorily permitted.

XI. PRAYER FOR RELIEF

WHEREFORE, Plaintiff respectfully prays that this Court enter judgment in favor of Plaintiff and against Defendant as follows:

☐ A. Declaring that the debt owed by Defendant to Plaintiff in the amount of $[________________] is nondischargeable pursuant to 11 U.S.C. § 523(a)(2), § 523(a)(4), and/or § 523(a)(6);

☐ B. Entering a money judgment in favor of Plaintiff and against Defendant in the amount of $[________________], together with pre-judgment and post-judgment interest at the applicable legal rate;

☐ C. Awarding Plaintiff its costs of suit;

☐ D. Awarding Plaintiff its reasonable attorneys' fees to the extent permitted by contract, statute, or applicable non-bankruptcy law, including under Cohen v. de la Cruz, 523 U.S. 213 (1998); and

☐ E. Granting such other and further relief as the Court deems just and proper.

Dated: [__/__/____]

Respectfully submitted,

_________________________________
[ATTORNEY NAME]
[STATE] Bar No. [________________]
[LAW FIRM NAME]
[________________________________]
[CITY, STATE, ZIP]
Telephone: [________________]
Email: [________________________________]
Attorney for Plaintiff [CREDITOR NAME]

VERIFICATION (Optional)

I, [________________________________], declare under penalty of perjury under the laws of the United States of America that I am [title / capacity] of Plaintiff, that I have read the foregoing Complaint, and that the factual allegations set forth therein are true and correct to the best of my knowledge, information, and belief.

Executed on [__/__/____] at [________________________________].

_________________________________
[PRINTED NAME]

SOURCES AND REFERENCES

• 11 U.S.C. § 523 — Exceptions to Discharge: https://www.govinfo.gov/app/details/USCODE-2024-title11/USCODE-2024-title11-chap5-subchapII-sec523
• Federal Rules of Bankruptcy Procedure 4007, 7001, 7003, 7004, 7009: https://www.uscourts.gov/rules-policies/current-rules-practice-procedure
• Grogan v. Garner, 498 U.S. 279 (1991) (preponderance standard for § 523 exceptions)
• Field v. Mans, 516 U.S. 59 (1995) (justifiable reliance under § 523(a)(2)(A))
• Cohen v. de la Cruz, 523 U.S. 213 (1998) (fees and punitive damages follow the nondischargeable debt)
• Kawaauhau v. Geiger, 523 U.S. 57 (1998) (willful requires intent to injure under § 523(a)(6))
• Bullock v. BankChampaign, N.A., 569 U.S. 267 (2013) (mental-state standard for defalcation under § 523(a)(4))
• Stern v. Marshall, 564 U.S. 462 (2011) (bankruptcy court constitutional authority)

This template is provided for informational purposes only and does not constitute legal advice. Nondischargeability litigation is fact-intensive and strictly deadline-driven. Have this document reviewed and tailored by qualified bankruptcy counsel before filing.