Court ruled that bank acquiesced in debtor's sale of collateral & failure to apply all proceeds to bank debt; debt was dischargeable because there was no intent to hinder, delay or defraud creditor, nor was there a willful & malicious property conversion
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Debtors' real property was sold at tax sale but the sale was not confirmed pre-petition. County sought relief from stay to confirm sale and transfer the property to a buyer. Motion was denied because debtors propose to use the property to reorganize