Bank of Iberia vs. Troy and Denise Jeffries - Adversary No: 07-2020

Description: Court denies complaint for nondischargability under 727(a)(2) but grants complaint under 523(a)(6). Plaintiff alleged that Debtor intentionally damaged its collateral. The Court found that Debtor s destruction or misuse of fully-encumbered property (and property with no equity) does not warrant denying him a general discharge under section 727 of the Bankruptcy Code because such an act does not harm the unsecured creditors whom the section seeks to protect. However, based on the evidence introduced by Plaintiff and the lack of any credible explanation from Debtor, the Court found that Plaintiff established that the damage was done with a wilful and malicious intent to injure Plaintiff and that it should therefore be nondischargeable pursuant to section 523(a)(6).

Date of decision: 10/16/07

Full opinion click here.