11/08/2012 11:00:00 AM EST
Thompson v. Barbee (In re Barbee), 479 B.R. 193 (Bankr. S.D. Ga. 2012)
Collier on Bankruptcy was cited in this recent decision:
Collier on Bankruptcy section cited: 6 Collier on Bankruptcy ¶ 727.04 (accessible by lexis.com subscribers)
Lexis.com subscribers can view the enhanced version of In re Barbee.
LexisNexis Overview: The debtor, a primary shareholder in a corporation, sought a loan from creditors and entered into an agreement whereby strict terms were placed on the use of revenues. When the corporation's financial circumstances did not improve, the debtor shut down the business and agreed with the creditors to try to collect accounts receivables to pay down the debt to the creditors. The debtor instead used certain accounts receivables payments to pay an IRS debt for which the debtor was personally liable. The creditors argued that the debtor should be denied any discharge pursuant to 11 U.S.C.S. § 727(a)(4) due to omissions in his schedules and statement of financial affairs. While there were some problems with the schedules, the court found the evidence was not sufficient to establish that the debtor knowingly and fraudulently made a false oath as contemplated by § 727(a)(4). However, the court excepted from discharge the specific debt to the creditors pursuant to § 523(a)(2) based upon the debtor's fraudulent misrepresentation that he would remit the funds to the creditors and pursuant to § 523(a)(6) because the injury to the creditors was willful and malicious [an annotated version of 11 U.S.C.S. § 523 is available to lexis.com subscribers] and [an annotated version of 11 U.S.C.S. § 727 is available to lexis.com subscribers].
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