Wyoming Supreme Court 2019 WY 14 Decision: January 31, 2019
Appellant Stanley E. Thomas was a co-obligor, with his single member LLC, on a mortgage note and Wyoming judgment. The co-obligor LLC was partially discharged of the debt by the bankruptcy court. The Court held that Appellant Thomas, who was not a party to his co-obligor’s bankruptcy, was not entitled to the benefit of the partial discharge of debt granted to the co-obligor by the bankruptcy court. The Wyoming Supreme Court held that partial discharge of a debtor in bankruptcy does not relieve a bankrupt’s co-debtor, not a party to the bankruptcy, from his joint and several liability under a mortgage note and Wyoming judgment. The Supreme Court also ruled that the appropriate standard of review for a mortgage deficiency judgment is a de novo review.