Tag: § 727(a)(2)(A)

Bankr. M.D.N.C.: In re Jeffries- Denial of Discharge


Uncontested evidence showed that the Debtor had failed to disclose the transfer of real property to her brother 15 days prior to the filing of her bankruptcy as well as the omission of ownership interests in an investment club and several bank accounts. While it was determined in a separate action that the transfer of the real property was subject to a pre-existing lien and had no equity, the Bankruptcy Administrator nonetheless sought denial of the Debtor’s discharge under both 11 U.S.C. §§ 727(a)(2)(A) and 727(a)(4)(a).

Denial of a Debtor’s discharge pursuant to § 727(a)(2)(A) requires a showing that that the debtor:
(1) transferred or concealed,
(2) his property,
(3) with the intent to hinder, delay or defraud a creditor,
(4) within one year before filing the petition.… Read More

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Bankr. E.D.N.C.: In re Skubic- No Summary Judgment on Denial of Discharge


In a case involving multiple corporations and transfers back and forth from the Debtors’ household bank accounts and corporate accounts, the Trustee and a major creditor sought a denial of discharge against the debtors under 11 U.S.C. § 727.

After reviewing and finding that the Debtors displayed several of the “badges of fraud”, see West v. Abdelaziz (In re Abdelaziz), 2012 Bankr. LEXIS 591, at *7-8 (Bankr. M.D.N.C. Feb. 1, 2012), the bankruptcy court nonetheless found that the Debtors also displayed several of the mitigating  “badges of a desperate but well-intended debtor”, including:

(1) Evidence showing that the multiple corporations were established for legitimate purposes;
(2) Attempted negotiations prior to bankruptcy with creditors;
(3) Repayment of transfers from corporate accounts, particularly from liquidation of the individual Debtors’ personal property;
(4) Preferential payments were not evidence of an intent to hinder, delay or defraud other creditors;
(5) The Debtors lack of financial sophistication; and
(6) That the Debtors might, even though in one joint bankruptcy as husband and wife, not both share the culpability.… Read More

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Bankr. E.D.N.C.: In re Long – Iqbal/Twombley Pleading for § 727(a)(2)(A)


Creditor, Two Olives, Inc., sought denial of the debtors’ discharge pursuant to 11 U.S.C. § 727(a)(2)(A) , asserting that“the debtor, with intent to hinder, delay, or defraud a creditor . . . has permitted to be transferred . . . property of the debtor, within one year before the date of the filing of the petition.” Prior to the filing of the Chapter 7, the Debtors had allowed three parcels of real property to be sold a t foreclosure- the Ridley property was purchased with a credit bid by the lienholder and the Male Debtor’s mother purchased the McCulloch and Anclote properties for $396,338 and $189,805.65, respectively.… Read More

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4th Cir.: In re Bane- Failure to Raise Issues from Bankruptcy Court on Appeal from District Court


In 2007, Bane’s company, Aequitas-Energy, Inc., purchased fifty acres of land (the Angel Lane Property) in Roanoke County, Virginia, from Bane’s mother, Martha Bane, who was granted at $400,000 mortgage against the property. This mortgage was never recorded and the later mortgage to Community Trust Bank was accordingly superior. Bane, having fallen into default on the Coummunity Trust mortgage and facing foreclosure, had the property transferred into his name and filed bankruptcy in 2010, the day before the foreclosure sale. This first Chapter 7 bankruptcy was dismissed, as Bane had failed to obtain credit counseling. When Community Trust scheduled a second foreclosure sale for January 24, 2011, Bane transferred a 90% interest in the property back to his mother, and filed a second Chapter 7 bankruptcy (after presumably obtaining credit counseling) on January 21, 2011.… Read More

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