Buescher v. First United Bank and Trust (In the Matter of Buescher)

Case No. 14-40361 (5th Cir. Apr 13, 2015)
Affirmed judgment against debtors denying discharge under Section 727(a)(3) for failure of debtors to preserve records as to their financial condition. Creditor had standing to object to discharge against spouse notwithstanding she had no personal liability on claim. Bankruptcy Court did not abuse its discretion in granting additional time for service on debtors. Creditor carried its burden for objection to discharge.
Procedural context:
The Bueschers filed a joint chapter 7 petition. A creditor of husband debtor filed an adversary complaint seeking denial of both debtors' discharge under Section 727(a)(2)-(5). The Bankruptcy Court granted summary judgment against husband under Section 727(a)(3). The Bankruptcy Court later granted judgment against wife under Section 727(a)(2)-(4) after a bench trial. The debtors appealed. The District Court affirmed denial of discharge solely under Section 727(a)(3). The debtors further appealed. The Court of Appeals affirmed.
Dean and Sherry Buescher filed a joint chapter 7 petition. Dean had guaranteed a debt to First United Bank and Trust, Sherry had not. First United filed an adversary complaint seeking denial of debtors' discharge under Section 727. The Bueschers avoided service for a while. They then moved to dismiss for insufficient service. After a hearing, the Bankruptcy Court extended the time period for service, which was ultimately accomplished. First United moved for summary judgment against Dean and won. As to Sherry, the Bankruptcy Court held a bench trial and granted final judgment against her.
Jolly, Wiener, and Clement

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