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IN RE DEL BIAGGIO

Case No. 08-30991 TEC.

496 B.R. 600 (2012)

IN RE William James DEL BIAGGIO, III, aka "Boots" Del Biaggio, Debtor.

United States Bankruptcy Court, N.D. California.

July 02, 2012.

Attorney(s) appearing for the Case

John D. Fiero, Maxim B. Litvak, Miriam Manning, Richard M. Pachulski, Pamela E. Singer, Pachulski, Stang, Ziehl, and Jones, San Francisco, CA, for R. Todd Neilson, Trustee.

Julie M. Glosson, Office of the United States Trustee, San Francisco, CA, for U.S. Trustee.

Michael St. James, St. James Law, San Francisco, CA, for Debtor.

Chapter 11

OPINION

THOMAS E. CARLSON, U.S. Bankruptcy Judge

The question presented is whether a creditor who obtains a partial recovery from a non-debtor co-obligor is required to reduce the claim asserted against the debtor in bankruptcy. I hold that the claim against the debtor is not reduced by the partial recovery, even if state law requires that the claim be reduced in a non-bankruptcy setting.

FACTS

William Del Biaggio,...

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