Bullock v. BankChampaign NA, No. 11-11686 (11th Cir. 2012)Annotate this Case
Debtor appealed the district court's decision affirming the bankruptcy court's determination that an Illinois judgment debt owed to the Bank was not dischargeable, pursuant to 11 U.S.C. 523(a)(4). The court held that the bankruptcy court's order must be affirmed under section 523(a)(4) as a debt arising from a defalcation while debtor was acting in a fiduciary capacity. The court also held that the district court correctly determined that the propriety of the Bank's actions was not a basis for finding that the Illinois judgment debt should be discharged. Instead, the court agreed with the district court that the issue was not properly before the court, but rather should be brought by debtor in an action in Illinois to consider the malfeasance of the trustee. Accordingly, the court affirmed the judgment of the bankruptcy court.