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Summarizing by Shane Ramsey

Chen v. U.S. Trustee (In re Chen)

Case Type:
Case Status:
WW-17-1067-KuFB (9th Circuit, Oct 17,2017) Not Published
An individual's failure to keep records relating to alleged gambling debts and payments, the sale of her 2013 Lexus, and "millions in unexplained deposits and withdrawals into and out of [her] bank accounts in the two years preceding her petition" was sufficient evidence for the bankruptcy court to grant summary judgment on the trustee's objection to discharge.
Procedural context:
The debtor appealed the bankruptcy court's grant of summary judgment on the trustee's objection to discharge.
The debtor, a Chinese national, had lived in the United States since 2o1o. In the years before her bankruptcy, she had a "spotty" employment history, yet owned a Lexus and real property. Further, she had a bank account which showed millions of dollars of unexplained deposits and withdrawals. The debtor field a bankruptcy petition, alleging over $400,000 in gambling debts. The trustee asked for documentation and conducted a Rule 2004 examination of the debtor. Even with the debtor's supplemental production of documents, the trustee could not pierce the fog surrounding the debtor's assets, liabilities, and financial condition. As a result, the trustee filed an adversary proceeding against the debtor asking that the court not grant the debtor a discharge. The court granted summary judgment on the trustee's section 727(a)(3) claim.
KURTZ, FARIS, and BRAND, Bankruptcy Judges

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