Legal News for Credit Union Managers Since 1990
« Discharged Loan Re-Written Is Unenforceable
Reasonable Reliance on Debtor’s Loan Application »
04
Jan
2022

Statement of Financial Affairs: Discharge Denied

 Here, debtors failed to keep adequate records of their finances, and consequently the court denied their discharge.

The debtors’ Statement of Financial Affairs indicated that they were principals in nine corporations.

Some of the corporations were inactive, however, debtor, Mr. Vetri testified that he was unable to locate any of the business records of the corporations. He claimed that those records were either at his parents’ house in Sarasota, Florida, or his parents’ house in Pennsylvania, or the records may have been lost.

Title 11 U.S.C. Section 727, provides, in pertinent part, that:

(a) The Court shall grant the debtor a discharge unless . . .

(3) The debtor has concealed, destroyed, mutilated, falsified or failed to keep or preserve any recorded information, including books, documents, records and papers, from which the debtor’s financial condition or business transactions might be ascertained, unless such act or failure to act was justified under all the circumstances of the case….

Debtors’ failure to keep appropriate books and records from which their personal and business financial conditions and transactions might be ascertained resulted in the court denying their bankruptcy discharge. Meadowbrook Mall Company v. Michael and Joanne Vetri, 155 B.R. 782.

Author: Charles R. Harroun



This entry was posted on Tuesday, January 4th, 2022 at 8:58 am and is filed under Bankruptcy, National. 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

    • Incompetency Defense in Collection Suit
    • Protecting Home Equity Mortgage Portfolios
    • Defective Automobile Lien Enforced
    • Preferential Transfer: Creditor Retains Debtor Garnishment Funds Received within 90-Days of Bankruptcy Filing
    • Refinanced Debt Fraud – No New Money
    • Collateral Taken Out-of-State
    • Chapter 13 Plan Cures Arrearage
    • Fraudulent Check Endorsement by Borrower
    • Creditor Required to Release Lien
    • Collection Letter Not Required Before Filing Suit
    • Insurance Lapse: Lift Stay & Repossess Collateral

  • Website Builder

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