IN RE COHN, (M.D.Ga. 1979)

MOSELEY, Bankruptcy Judge

Courts of bankruptcy have jurisdiction to determine whether a creditor's claim is provable under Section 63 of the Bankruptcy Act even if the claim sounds in both tort and contract. The court, however, cannot exercise subject matter jurisdiction over the tort portion of the claim since it is not provable. Further, in the case where the creditor alleges that it has lent money on the basis of alleged false representations made in financial statements, the Court has jurisdiction to determine whether the exemption from discharge for false financial statements applies. See Sec. 17a(2) [§ 523(a)(2)] at ¶ 9228 and 63a [§ 502(b)] at ¶ 9006.

The question of whether a debtor actually falsified financial statements is a jury question, which is preserved for jury trial by Section 17c(5) of the Bankruptcy Act. The answer to the fact question determines dischargeability, the provability question having been determined by the Court without a jury. See Sec. 17c(5) at ¶ 2157.