Eifler v. Wilson & Muir Bank

Denial of Debtor's discharge under 11 U.S.C. §§ 727(a)(2)(A)(transfer or concealment of assets) and 727(a)(4)(false oath) was affirmed.
Procedural context:
Bankruptcy Court denied Debtor's general discharge under 11 U.S.C. §§ 727(a)(2)(A) and 727(a)(4). Debtor appealed to District Court for the Western District of Kentucky which affirmed. Debtor appealed further to the Sixth Circuit Court of Appeals which likewise affirmed.
Debtor, businessman, was guarantor of multiple commercial loans made by Wilson & Muir Bank (the "Bank"). Debtor made multiple transfers of funds prior hiring an attorney and filing a voluntary chapter 7 case. Debtor began making transfers of 1/2 interests in income and property to his wife which had not previously been his course of dealing. Additionally, the Debtor failed to list numerous accounts, assets and transfers in his schedules. Bank filed an action under 11 U.S.C. § 727(a)(2)(A) and (a)(4) seeking to deny the Debtor's general discharge. At trial, the Debtor argued that he had relied upon advice of counsel in omitting the various items from his bankruptcy schedules. The Bankruptcy Court found that the Debtor had made ten (10) material false oaths regarding money transfers and accounts and that the Debtor's advice of counsel defense was unavailing inasmuch as the Debtor had failed to fully disclose all pertinent facts to counsel and did not rely on any advice of counsel. Finding that none of the Bankruptcy Court's factual findings were clearly erroneous, the Sixth Circuit affirmed the judgment of the Bankruptcy Court denying the Debtor's discharge.
Keith, Moore and Stranch

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