In re: Berman

Bankruptcy Ct. did not err in finding that creditor had not established that debtor acted in any fiduciary capacity so as to render instant debt non-dischargeable under 11 USC section 523(a)(4) of Bankruptcy Code under circumstances where debtor failed to pay outstanding advertising debts out of money fronted to debtor by creditor. While debtor may have had fiduciary duty towards creditor under Illinois law to extent that his company was insolvent during time that part of instant debt arose, said state-law duty would not have constituted basis for non-dischargeability since creditor failed to show that debtor was acting as trustee without reference to any wrong arising out of instant debt. Moreover, instant creditor failed to show existence of either express or implied trust arising out of instant contract to provide creditor with bill-paying services.