I’m working on a business law discussion question and need an explanation and answer to help me learn.
Brian Scholz was involved in an automobile collision with a person insured by 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. Travelers paid its insured $4,303.68 and was subrogated to the rights of its insured against Scholz. Subsequently, Travelers filed a civil action against Scholz to recover the amount it had paid, and a default judgement 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 owning to Travelers was non-dischargeable.
Is the debt dischargeable? Fully respond using IRAC method.
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