- Case No. 17-1017
Issue: Whether a debtor committed willful and malicious injury within the meaning of 11 U.S.C. 523(a)(6) by circumventing a charging order and transferring funds from a family LLC to his tax preparer for the preparation of state and federal returns for himself and his juridical entities.
RULING: The debtor injured plaintiff by transferring funds to his accountant for the preparation of his personal tax returns and the injury was "willful and malicious" within the Fifth Circuit's definition of the term. The debtor knew of plaintiff's charging order and injury to the plaintiff was substantially certain to result from the debtor's action.