Is One Year In Jail Fair for Civil Contempt or Loss of Memory?

    March 1, 2016wily___go_to_jail___by_akarimms-d302wqm[1]

An owner of a company sold a  $13.8 million resort property in contempt of bankruptcy order.  The debtor could neither  explain nor account for what happened to that money or the resort.   The bankruptcy judge has taken a stand in this matter and is holding the debtor in contempt of court.

The Debtor has filed 6 appeals to get out of jail but the Judge is holding firm that he must explain more clearly where the money went. Continue reading…

Ex-Wife Sentenced for Not Reporting Divorce Settlement $

December 1, 2015

A Debtor was sentenced to 120 days of home confinement for the crime of making a false declaration.  In addition, the Debtor must also service a 1-year term of court supervision.   The ex-wife (Debtor) filed a Chapter 7 Bankruptcy Petition seeking to discharge $22,782 in Debt.   Two months later, the Debtor received $108,400 in income as part of a divorce settlement.   The money came from her ex-husband’s IRA and she did not report this income.

The Debtor was also denied a discharge.  You must be completely truthful when you ask the government for bankruptcy relief.

Dance Moms’ Star – Let’s Dance into Bankruptcy Court

October 16, 2015

“Dance Moms” star Abby Lee Miller has been charged with hiding $775,000 worth of income from the Lifetime network reality show and spinoff projects while in Chapter 11 Bankruptcy.Abby Lee

During her Chapter 11 bankruptcy, prosecutors found that she hid income in 2012 and 2013 earned from her TV appearances as well as from dance sessions, merchandize and apparel sales.

Ms. Miller concealed her income in order to gain very favorable terms in paying back her creditors. Continue reading…

Bribing a Creditor – Results in Bankruptcy Fraud Conviction

March 20, 2015

I can’t emphasize enough that honesty is the best policy when you come to the Federal Government for relief from your debts.

You cannot talk to your creditors and persuade them not to contest your Bankruptcy Filing.   And, most certainly, you cannot offer your creditors money to be silent in your Bankruptcy Filing. Continue reading…

False Statements: Chihuahua is Not a Big Dog and Craig’s List Statement – Result: Non Dischargeable Debts

March 5, 2015

Making false representations and/or causing deliberate damages to a Creditor are not dischargeable.

The Debtor’s landlord sued the debtor and the following acts by the Debtor made these debts non-chargeable as ruled by the Bankruptcy Court.

What happened?

  • Debtor rented a property from the Landlord.
  • Lease included one dog – a small Chihuahuajulio
  • Upon leaving, it was found that the Debtor had a large dog which caused significant damage to the landlord’s property.
  • When the landlord sued the Debtor for damages, the Debtor (renter) posted statements on Craig’s List that the landlord was a slumlord, thief, etc. and other derogatory statements.
  • The Bankruptcy court found that the Debtor had made up all the false statements against the landlord and the statements were not true – these statements were intended to cause financial harm to the landlord.
  • The Bankruptcy Court ruled that the loss of rental income due to the false statements as well as the damage by the large dog (who was supposed to be a Chihuahua) were both non-dischargeable.  In addition, the court awarded the landlord attorney fees and these were also non-dischargeable.

Bankruptcy is not intended to get away with intentional harm by you or your dog to your creditors and not even your landlord.


Another Case of Fraud – Assets Include Diamonds……

March 5, 2015

As previously discussed, when you go the U.S. Bankruptcy Court for help for a fresh start in bankruptcy, you must be prepared to tell the entire story.Diamond Ring

Recently, a Florida couple filed for bankruptcy.   In their bankruptcy petition, the Debtors claimed that they owed approximately $2.9 million to creditors, and had assets worth less than $13,000. Continue reading…

Don’t Adopt a “strategy” with respect to Truth Telling

CaptureFebruary 26, 2015

A CEO of a bank owed the bank more than $11 million.   Just before his anticipated filing of Chapter 7 bankruptcy, he transferred most of his assets to his wife.

The Bank objected to their ex-CEO’s discharge claiming he failed to disclose pre-petition assets to the Court. Continue reading…

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