Bankruptcy court denied offset claim because debt arose after bankruptcy declaration and criminal conviction bars offset.

The Supreme Court dismissed the bankruptcy trustee's appeal regarding a claim for offset against a former employee. The employee owed money for damages caused by intentional criminal acts committed before the bankruptcy declaration. The court ruled that offset is only permissible if the counterclaim existed before bankruptcy, which was not the case here. Furthermore, the court held that debts arising from intentional torts cannot be offset under civil law, regardless of the timing.