In this case, 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. In re John Campbell, 124 B.R. 462.

Author: Charles R. Harroun, Attorney at Law