Bankr. No.:
04-40136
Adv. No.:
04-4016
Chapter:
7
Date of Decision:
March 4, 2005
Issue:
Whether Debtors’ discharge should be denied or whether Plaintiff’s claim should be declared nondischargeable where Debtors were unable to account for all funds of a closely held corporation (which was in a separate Chapter 7) and for all funds deposited into their personal account shortly before filing?
Ruling:
Debtor-husband’s discharge was denied under 11 U.S.C. § 727(a)(3) because he failed to keep and produce records related to his personal checking accounts and records related to expenses Debtors claimed they paid for the closely-held corporation. No relief was ordered against Debtor-wife. Plaintiff had not plead § 727(a)(3) or any nondischargeability claim against her. The facts did not support a denial of Debtor-wife’s discharge under § 727(a)(2)(A), the one subsection of § 727(a) that was plead against her.
Full Bankruptcy Court Decision:
