Bank filed complaint against chapter 7 debtors, claiming that its debt should be non-dischargeable under 11 U.S.C. § 523(a)(4) and (6), and that debtors' discharge should be denied under 11 U.S.C. § 727(a)(2) and (7). Bank's claims arose from postpetition improper use of its cash collateral by debtor husband's wholly owned trucking company, in its own chapter 11 bankruptcy. The court held that the trucking company, as a debtor-in-possession, was a fiduciary of a statutory trust imposed by 11 U.S.C. § 1107. The court further found that debtor husband completely controlled the closely held corporation, while debtor wife did not. Therefore, husband was liable for any breach of fiduciary duty by the corporation, but wife was not. Finally, the court found that the corporation's dissipation of bank's cash collateral, which resulted in a substantial loss to bank, was a defalcation under § 523(a)(4) that warranted a non-dischargeable judgment in bank's favor against debtor husband, as well as a general denial of debtor husband's discharge.