Bank of America, N.A. v. Armstrong, No. 13-6013 (8th Cir. 2013)
Annotate this CaseDebtor appealed from the order of the bankruptcy court finding his debt to Bank of America nondischargeable under 11 U.S.C. 523(a)(2) for fraud and section 523(a)(4) for embezzlement. Under section 523(a)(4), Southwest Bank established that debtor was not lawfully entitled to use the insurance proceeds at issue for the purposes for which he used them and debtor produced nothing to the contrary. Accordingly, the bankruptcy appellate panel (BAP) affirmed the bankruptcy court's finding under section 523(a)(4). Because the BAP concluded that the bankruptcy court did not err in finding the debt to be nondischargeable under 523(a)(4) for embezzlement, the court limited its analysis to that basis for nondischargeability and did not reach the section 523(a)(2) fraud issue.
Court Description: Bankruptcy Appellate Panel. The bankruptcy court did not err in finding debtor's debt was not dischargeable under 11 U.S.C. Sec. 523(a)(4) for embezzlement as the bank established that debtor was not lawfully entitled to use the insurance proceeds in question for the purposes for which he used them. [ September 18, 2013
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