Robert Spigel owed the McCrorys money from a court judgment involving fraudulent conduct. Spigel filed for bankruptcy and tried to have the debt erased. The court ruled that even though Spigel committed fraud, the debt could be discharged in bankruptcy because the fraud wasn't directly aimed at the McCrorys—it involved a third party. The key lesson: fraud must be directed at the creditor seeking payment to survive bankruptcy.
If a debtor defrauds someone else (not you), you likely can't use that fraud to prevent them from erasing the debt in bankruptcy