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Arvest Mortg. Co. v. Nail (In re Nail)

Arvest Mortg. Co. v. Nail (In re Nail)

Ruling
Bankruptcy appellate panel properly reversed nondischargeability of debt for fiduciary defalcation where state law had not created express or technical trust.
Procedural posture

Appellant mortgage company sought a judgment declaring appellee debtor's mortgage debt nondischargeable. The bankruptcy court concluded that $65,000 of the debt was nondischargeable under 11 U.S.C.S. § 523(a)(4) because debtor held that amount of settlement proceeds in a fiduciary capacity created by Ark. Code Ann. § 4-58-105(b)(2). The U.S. Bankruptcy Appellate Panel for the Eighth Circuit (BAP) reversed. The mortgage company appealed.

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Court :
Judge or Jurisdiction information not available
Consumer opinion summary, case decided on June 05, 2012 , LexisNexis #0612-117