April 30, 2017

Background:

  • Debtors filed for Chapter 7 bankruptcy.
  • Debtors did not list 2 inoperable trucks that they owned; debtors’ claimed these trucks at the time of the petition were property of deceased father.
  • Changed their schedules when the two trucks were questioned; amended their schedules to include one truck.
  • Plaintiff, former landlord of Debtors, evicted Debtors and objected to the Debtors’ discharge.

Court Ruling:

  • Court found Debtors’ insistence that the truck was the property of his deceased father and he inherited the truck and stating one of the trucks was in his possession clearly shows intent to present false information.
  • Court found that the Debtors had a reckless disregard for the truth in disclosing all possible assets of their bankruptcy estate.
  • The fact that the debtors amended their schedules to disclose the trucks did not help them because the disclosures came after the Plaintiff questioned their omission.
  • The 2 trucks were on the Debtors’ property when they filed for Bankruptcy and the false oath was knowing and fraudulent.
  • Bankruptcy Discharge Denied