Legal News for Credit Union Managers Since 1990
« CEO/Credit Union Manager Loses Wrongful Termination & Age Discrimination Suit
Credit Union Violates Bankruptcy Stay »
26
Sep
2009

Chapter 7 Bankruptcy Dismissed

Bankruptcy
Chapter 7 Bankruptcy Dismissed
By Charles R. Harroun, Attorney at Law
Feb 29, 2004, 23:28

DEBTOR DENIED DISCHARGE IN
BANKRUPTCY

In the case of In re John Campbell, 124 B.R. 462 (1991), the bankruptcy court dismissed debtor’s Chapter 7 bankruptcy after discovering the debtor had previously titled his property jointly with his wife, who did not file bankruptcy. The debtor sought to keep all of his property through the joint ownership with his wife and utilization of the Bankruptcy Code exemptions.

Although the bankruptcy trustee filed a report indicating there were no assets for distribution to creditors, the court, on its own initiative, looked further into the debtor’s finances and found that the debtor should not be entitled to relief through bankruptcy.

The court found that debtor paid cash for a $135,000 home, titled jointly with his wife, as well as an $86,000 money market fund, and other assets jointly titled with his wife. The court also noted the debtor had a Keogh retirement account of some $39,000 held in debtor’s individual name.

The court noted that debtor’s bankruptcy petition makes a farce of the Bankruptcy Code. Consequently, the court denied debtor’s discharge and dismissed this Chapter 7 case.




This entry was posted on Saturday, September 26th, 2009 at 4:31 am and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

Your comment

Powered by WP Hashcash

  • Recently Posted Articles written by: Charels R. Harroun, Attorney at Law

    • Defective Notice to Sell Collateral Defeats Collection of Deficiency
    • Credit Union Assessed Punitive Damages
    • Attorney Fees Assesses Against Bankrupt Debtor
    • Automatic Stay Violation: Costs Assessed Against Credit Union
    • Credit Union Lien Survives Chapter 7 Discharge
    • Constructive Discharge: Credit Union Violates Employee’s Rights
    • Right to Cancel – Truth-In-Lending Violation
    • Mechanics Lien Extinguished Credit Union Security Interest
    • Cashier Checks: Bank Liable to Credit Union
    • Reopening Bankruptcy Case Denied
    • Board Member Loses Suit Against Credit Union

  • Website Builder

2009-2020 Copyright Harroun, P.C. | Credit Union Legal Newsletter powered by WordPress and Uchilla
Subscribe: Entries (RSS) and Comments (RSS)