New Buffalo Savings Bank v. McClung (In Re McClung)

MEMORANDUM OPINION AND ORDER GRANTING DEFENDANT’S MOTION FOR INVOLUNTARY DISMISSAL OF COUNT II OF THE COMPLAINT (SECTION 523(a)(6))

K. RODNEY MAY, Bankruptcy Judge.

New Buffalo Savings Bank (“NBSB”) seeks to have its $617,485.83 unsecured claim excepted from the Chapter 7 discharge, alleging that the debtor’s receipt of about $1 million of the bank’s cash collateral two years before the petition date, and the debtor’s reinvestment of about $480,000 of such funds in assets that were exempt or immune from collection, was a “willful and malicious injury” to the bank under Section 523(a)(6) of the…