(Bankr. E.D. Ky. Sept. 14, 2016)
The bankruptcy court denied debtor’s discharge under Sections 727(a)(2) and (a)(4) at the request of the UST. Debtor failed to disclose a corvette, a motor home, and a boat and trailer on Schedule B, asserting they were sold to his father in January 2013, but the UST showed that transfer and certificate of title documentation was not executed until October 2014, just over a month before debtor filed bankruptcy. Debtor maintained possession of those assets. Debtor also failed to disclose his ownership of four complete sets of tickets for the 2014-2015 UK men’s basketball season, as well as numerous other assets. Debtor’s testimony on the status, ownership and disposition of all these assets was inconsistent and led to credibility issues according to the court. The court also discussed the UST’s claim under Section 727(a)(5). A March 2013 financial statement by debtor listed assets of $10.5 million, but his November 2014 petition identified just $415,000 in assets. Even though the court did not have to rely on the 727(a)(5) claim, as denial of discharge was already warranted under 727(a)(2) or (a)(4), the court noted a discussion of the UST’s 727(a)(5) claim was valuable as it supported the (a)(2) and (a)(4) claims.
Attorney for Debtor: Michael Baker
Attorney for UST: Bradley Nederman
Author: Robert K. Imperial