In their Chapter 7, the Youngs agreed, in a court approved settlement, to allow the sale of their residence, splitting the net proceeds equally with the Trustee and were to keep “only those furnishings necessary to furnish their new residence”, with the remainder of their personal property to be auctioned. After initially identifying the property they were to retain with the Trustee’s auctioneer, the Young sold all of their additional property with a different auction company, using the funds to pay for moving costs. It appears that the proceeds from the sale of the personal property amounted to $937.50. The Trustee and Bankruptcy Administrator then sought denial of the Youngs’ discharge pursuant to 11 U.S.C.… Read More
Before filing a voluntary Chapter 7 bankruptcy, Ms. Washabaugh was employed by Wake Forest Baptist Health/N.C. Baptist Hospital, where she made personal purchases using her employer’s credit card without reimbursement, also using that credit card and gift cards to make purchases from her own Thirty-One handbag business for gifts for volunteers and other employees. Ms. Washabaugh was terminated for these purchases, with the hospital filing an employee dishonesty claim with National Union Fire Insurance for $1,009,347.00. When Ms. Washabaugh filed her bankruptcy, she did list the hospital as a creditor, but only for minor medical bills, disclosing neither the potential claim related to the purchases nor her pending criminal prosecution.… Read More
In her Chapter 7 bankruptcy petition, Crawford listed several parcels of real property as “held” for other parties, when, in fact, these parcels (and two additional undisclosed parcels) were hers. Crawford also did not disclose in her Statement of Affairs that prior to filing her case, she had received $80,000 in insurance proceeds from a robbery, using $47,500 to pay debts to friends and family. $7500 of that amount was actually sham transaction as were other funds deposited into undisclosed bank accounts used by Crawford.
Considering the cumulative weight of these non-disclosures, the bankruptcy court denied Crawford’s discharge pursuant ton 11 U.S.C.… Read More
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
Prior to the §341 Meeting of Creditors, the trustee was provided with an incomplete 2011 tax return, but, after insisting at the meeting, was given a complete return. This complete return disclosed that Belk was the owner of Independence Entertainment, L.L.C., an entity with annual revenues of more than $200,000, but which was not listed in Belk’s petition. The Trustee then discovered that Independence Entertainment had been administratively dissolved only three months before the filing of the bankruptcy and had transferred business assets to a third party. Only after all of these discoveries, did Belk then turn over additional business records.… Read More
The Chapter Trustee sought denial of Spiers’ discharge, exemptions, and monetary relief on the grounds that Spiers had intentionally failed to disclose numerous assets and transfers of assets he owned or had an interest in at the time of the filing of the bankruptcy petition, attempted to suborn perjury from another witness, and failed to cooperate with the Trustee to the point that the Trustee forced to expend a substantial amount of time and resources in attempting to obtain an accurate portrayal of Spier’s finances and to recover for the benefit of his creditors.
As such, the bankruptcy court found that Spiers had engaged in conduct that warranted denial of his discharge under 11 U.S.C.… Read More
The Trustee sought a denial of discharge, claiming the Debtor, with the intent to hinder, delay, or defraud, concealed property of the estate and knowingly and fraudulently, in connection with a case, made a false oath. At the §341 Meeting, in response to questions from the attorney for the his estranged spouse, the Debtor admitted that he owned a $2,000 horse trailer and a grease gun, wrenches, a pressure washer, a generator, an air compressor, and a tool chest filled with tools, worth approximately $800.00. (These assets were sold at auction for $2,917.50.)
The Debtor contended he did not disclose the horse trailer in his petition or initially at the §341 Meeting because it was not titled in his name.… Read More
The Debtor’s corporation filed Chapter 7 and the Debtor agreed to buy the assets of the corporation from the Chapter 7 Trustee for $3,400.00. The Trustee was later contacted by an auctioneer, who informed the Trustee that the Debtor was attempting to sell additional corporate assets, that had not be listed in the bankruptcy petition filed by the corporation. The Debtor eventually did sell these non-disclosed assets for $4,000.00 and also filed his own personal Chapter 7 bankruptcy, with the same Trustee being appointed. The Trustee eventually settled with the Debtor for an additional $2,300.00, but then brought an adversary proceeding to deny the Debtor his discharge pursuant to 11 U.S.C.… Read More