- 11 U.S.C.
Cadleway Props. Inc. v. Armstrong (In re Armstrong)
Oct
03
2006
Ruling
Only a portion of loan debt was nondischargeable due to conversion of collateral where creditor allowed debtor's business to continue post-default.
Procedural posture
Plaintiff creditor, the assignee of loan debt from a lender, brought an adversary proceeding against defendant bankruptcy debtor, seeking a determination that the creditor's judgment debt on the loans against the debtor as guarantor was not dischargeable under 11 U.S.C. § 523(a)(6) because the debtor's conversion of the creditor's collateral constituted willful and malicious injury to the creditor. The bankruptcy court conducted a trial.
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Court
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