Bankr. No.:
21-40030
Adv. No.:
21-4003
Chapter:
7
Date of Decision:
March 28, 2022
Issue:
Were any parties entitled to summary judgment concerning whether the indebtedness owed to a creditor was excepted from discharge under 11 U.S.C. § 523(a)(6) or whether the debtors should be denied a general discharge of debts pursuant to 11 U.S.C. § 727(a)(2)(A) or (a)(3)?
Ruling:
The creditor was denied any relief against one of the debtors because none of the allegations in its complaint specifically identified any actions taken by that debtor relating to the sale of the race car, the disposition of the sale proceeds, or the couple's record keeping. The creditor was denied relief against the second debtor under 11 U.S.C. § 523(a)(6) because it failed to identify any evidence establishing that debtor's conduct was either "willful" or "malicious." However, the creditor was permitted to proceed against the second debtor since there were issues for trial under 11 U.S.C. § 727(a)(2)(A) and because the record was not sufficiently developed on the two elements of 11 U.S.C. § 727(a)(3).
Full Bankruptcy Court Decision:
