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IN RE STONE

Bankruptcy Nos. 48400048, 48400049, Adv. Nos. 4840031, 4840032.

52 B.R. 305 (1985)

In re Hayward Arnold STONE, Velvy Ree Stone, John Fitzgerald Stone, Loretta Stone, Debtors. NOLIN PRODUCTION CREDIT ASSOCIATION, Plaintiff, v. Hayward Arnold STONE, Defendant. NOLIN PRODUCTION CREDIT ASSOCIATION, Plaintiff, v. John Fitzgerald STONE, Defendant.

United States Bankruptcy Court, W.D. Kentucky.

August 21, 1985.

Attorney(s) appearing for the Case

Jan Jefferson, Elizabethtown, Ky., for defendants.

Dwight Preston, Elizabethtown, Ky., for plaintiff.

MEMORANDUM OPINION

MERRITT S. DEITZ, Jr., Bankruptcy Judge.

This matter comes before us on the motion of the plaintiff to deny the debtors a discharge under § 727 of the Bankruptcy Code. Initially, this presents a single legal issue: are the funds generated from a tort claim settlement involving property which was collateral for a secured debt "proceeds" of that collateral within the meaning of Kentucky Revised Statutes [KRS] § 355.9-306(1)?

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