MEMORANDUM OPINION AND DECISION
RICHARD L. SPEER, Bankruptcy Judge.
This cause comes before the Court upon Defendant's Motion for Summary Judgment and upon Plaintiff's Response. The Court has reviewed the arguments of counsel, exhibits, as well as the entire record of the case. Based upon this review, and for the following reasons, this Court finds that genuine issues of material fact exist and Defendant's Summary Judgment Motion should be denied.
On October 11, 1994, Defendant obtained a loan from Plaintiff to be repaid in forty-two monthly installments. To secure the loan the Defendant pledged certain items of his personal property. This pledge included a purchase money security interest in a three piece table and three piece living room set, a Ben Pearson Bow, a Remington 870 shotgun, and a Panasonic video cassette recorder. On October 27, 1995, the Defendant filed bankruptcy under Chapter 7 of the Bankruptcy Code. At the first meeting of creditors the Defendant stated that he no longer had in his possession the three piece table and three piece living room set. He testified that these items were now in the possession of his former girlfriend, whom he allowed to retain the items upon the dissolution of their relationship. Plaintiff has been unable to locate the former girlfriend. The date of the property transfer to Ms. Rogers is unspecified. The Defendant retained possession of the other items of collateral, and an arrangement between the Defendant and the Plaintiff has been made regarding these items.
Plaintiff brings the present adversary proceeding to either have the underlying debt determined nondischargeable, or to have the Defendant's discharge denied in full, due to the misappropriation of the collateral. Defendant has filed the present Motion for Summary Judgment claiming that the Plaintiff has not shown a material issue of fact for trial, and that these facts do not support either a denial of discharge or the nondischargeability of this particular debt.
The Bankruptcy Code, 11 U.S.C. § 101, et seq., provides in pertinent part:
11 U.S.C. § 523. Exceptions to Discharge
(a) A discharge under section 727, 1141, 1228a 1228(b), or 1328(b) of this section does not discharge an individual debtor from any debt —
(6) for willful and malicious injury by the debtor to another entity or to the property of another entity.
11 U.S.C. § 727. Discharge
(a) The court shall grant the debtor a discharge, unless —
(1) the debtor is not an individual;
(2) the debtor, with intent to hinder, delay, or defraud a creditor or an officer of the estate charged with custody of property under this title, has transferred, removed, destroyed, mutilated, or concealed, or has permitted to be transferred, removed, destroyed, mutilated, or concealed —
(A) property of the debtor, within one year before the date of the filing of the petition; or
(B) property of the estate, after the date of the filing of the petition;
(7) the debtor has committed any act specified in paragraph (2), (3), (4), (5), or (6) of this subsection, on or within one year before the date of the filing of the petition, or during the case, in connection with another case under this title or under the Bankruptcy Act, concerning an insider.
The Bankruptcy Rules provide in pertinent part:
Rule 7056. Summary Judgment
Rule 56 F.R. Civ. P. applies in adversary proceedings.
The Federal Rules of Civil Procedure provide in pertinent part:
Rule 56. Summary Judgment
(a) For Claimant. A party seeking to recover upon a claim, counterclaim, or cross-claim or to obtain a declaratory judgment may, at any time after the expiration of 20 days from the commencement of the action or after service of a motion for summary judgment by the adverse party, move with or without supporting affidavits for a summary judgment in the party\'s favor upon all or any part thereof.
(b) For Defending Party. A party against whom a claim, counterclaim, or cross-claim is asserted or a declaratory judgment is sought may, at any time, move with or without supporting affidavits for a summary judgment in the party\'s favor as to all or any part thereof.
(c) Motion and Proceedings Thereon. The motion shall be served at least 10 days before the time fixed for the hearing. The adverse party prior to the day of hearing may serve opposing affidavits. The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law. A summary judgment, interlocutory in character, may be rendered on the issue of liability alone although there is a genuine issue as to the amount of damages.
(d) Case Not Fully Adjudicated on Motion. If on motion under this rule judgment is not rendered upon the whole case or for all the relief asked and a trial is necessary, the court at the hearing of the motion, by examining the pleadings and the evidence before it and by interrogating counsel, shall if practicable ascertain what material facts exist without substantial controversy and what material facts are actually and in good faith controverted. It shall thereupon make an order specifying the facts that appear without substantial controversy, including the extent to which the amount of damages or other relief is not in controversy, and directing such further proceedings in the action as are just. Upon the trial of the action the facts so specified shall be deemed established, and the trial shall be conducted accordingly.
(e) Form of Affidavits; Further Testimony; Defense Required. Supporting and opposing affidavits shall be made on personal knowledge, shall set forth such facts as would be admissible in evidence, and shall show affirmatively that the affiant is competent to testify to the matters state therein. Sworn or certified copies of all papers or parts thereof referred to in an affidavit shall be attached thereto or served therewith. The court may permit affidavits to be supplemented or opposed by depositions, answers to interrogatories, or further affidavits. When a motion for summary judgment is made and supported as provided in this rule, an adverse party may not rest upon the mere allegations or denial of the adverse party\'s pleading, but the adverse party\'s repose, by affidavits or as otherwise in this rule, must set forth specific facts showing that there is a genuine issue for trial. If the adverse party does not so respond, summary judgment, if appropriate, shall be entered against the adverse party.
(f) When Affidavits are Unavailable. Should it appear from the affidavits of a party opposing the motion that the party cannot for reasons stated present by affidavit facts essential to justify the party\'s opposition, the court may refuse the application for judgment or may order a continuance to permit affidavits obtained or depositions to be taken or discovery to be had or may make such other order as is just.
(g) Affidavits Made in Bad Faith. Should it appear to the satisfaction of the court at any time that any of the affidavits presented pursuant to this rule are presented in bad faith or solely for the purpose of delay, the court shall forthwith order the party employing them to pay to the other party the amount of the reasonable expenses which the filing of the affidavits caused the other party to incur, including reasonable attorney\'s fees, and any offending party or attorney may be adjudged guilty of contempt.
Determinations concerning the dischargeability of a debt and objections to discharge are core proceedings pursuant to 28 U.S.C. § 157(b)(2). Thus, this case is a core proceeding.
This case is presented to the Court upon the Defendant's Motion for Summary Judgment. A movant will prevail on a motion for summary judgment if, "the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law." Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d 265 (1986). In order to prevail, the movant must demonstrate all elements of the cause of action. R.E. Cruise, Inc. v. Bruggeman, 508 F.2d 415, 416 (6th Cir.1975). Thereafter, the opposing party must set forth specific facts showing there is a genuine issue for trial. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249-51, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986). Inferences drawn from the underlying facts must be viewed in a light most favorable to the party opposing the motion. Matsushita v. Zenith Radio Corp., 475 U.S. 574, 586-88, 106 S.Ct. 1348, 1356, 89 L.Ed.2d 538 (1986). See also In re Bell, 181 B.R. 311 (Bankr.N.D.Ohio 1995).
Plaintiff brings this action under two sections of the Bankruptcy Code, both based upon the Defendant's alleged misappropriation of its collateral. Plaintiff alleges that the misappropriation is grounds for the denial of the Defendant's discharge pursuant to § 727(a)(2)(A), or alternatively that Defendant's individual debt to Plaintiff is nondischargeable pursuant to § 523(a)(6). In his Motion for Summary Judgment, Defendant claims to be entitled to summary judgment on both counts.
Defendant claims that disposition of security items prior to the bankruptcy is not a ground for denial of discharge. An objection to discharge under § 727(a)(2)(A) is of grave significance since it involves an objection to the discharge of all the debtor's...
