Not disclosing and transfer of assets led to denial of discharge

We learned nothing new from a recent court decision (In re Dan drum, Banker. D.ND. August 19, 2011): The debtor must take seriously his duties to disclose transfers before filing and to list income and assets accurately seriously or risk denial of discharge (and even more severe consequences).

Debtor failed to disclose assets and transfers on the schedules and statement of affairs. He also liquidated assets that he would not have been able to exempt in his bankruptcy case,  and paid only debts that were beneficial to him because the debt was either on exempt property or because the debt was nondischargeable.

Even though the debtor amended his schedules later and provided information about transactions to the trustee, the court found that debtor’s multiple inaccuracies regarding income, assets, and transfers rose to the level of “reckless indifference to the truth” which the court considered as equal to the intent to deceive.

What do we learn from it? Disclose, disclose, disclose everything that has been done before filing.

Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. For guidance regarding your specific situation, please contact A & L, Licker Law Firm, LLC directly.