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IN RE ALVEY

Bankruptcy No. 48500191, Adv. No. 4850031.

56 B.R. 170 (1985)

In re William Robert ALVEY, Brenda Elizabeth Alvey, Debtors. GREEN RIVER PRODUCTION CREDIT ASSOCIATION, Plaintiff, v. William Robert ALVEY and Brenda Elizabeth Alvey, Defendants.

United States Bankruptcy Court, W.D. Kentucky.

December 31, 1985.

Attorney(s) appearing for the Case

Charles L. Lamar, Lovett & Lamar, Owensboro, Ky., for plaintiff.

Gary M. Gibbs, West, Ternes, Gibbs & Overfield, Henderson, Ky., for defendants.

Russ Wilkey, Owensboro, Ky., trustee.

MEMORANDUM OPINION

MERRITT S. DEITZ, Jr., Bankruptcy Judge.

The duty of trust imposed on Chapter 11 debtors in possession and the cost of a breach of that duty are underscored by the case at hand. The case also presents a microcosm of the farm financial crisis which pervades this district, involving as it does the tracing of asset accountability through three bankruptcy cases.

As part of a "full proceeds loan" agreement in 1980, William and Brenda...

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