In re: Kempff

Dist. Ct. did not err in affirming Bankruptcy Ct. order that rejected creditor’s complaint challenging debtor’s Chapter 7 discharge based on claim that debtor made fraudulent transfer to Ill. Dept. of Revenue to satisfy tax levy after filing her bankruptcy petition and made multiple false statements in her bankruptcy schedules. Bankruptcy Ct. could properly find that debtor was unaware of said transfer, where said transfer was in form of corporate distribution to stockholders and occurred in spite of debtor’s contrary direction to corporation. Creditor also failed to show that debtor intended instant transfer to hinder or defraud creditor. Moreover, Bankruptcy Ct. could properly find that certain misstatements in bankruptcy petition did not satisfy dictates of section 727(a)(4) so as to set aside instant discharge of debtor's debts, where Bankruptcy Ct. found debtor to be “very credible” that mistakes, pertaining to failure to list worthless $300,000 divorce settlement, as well as listing of uncollectible $1.4 million claim by debtor's parents arising out of their support of debtor’s children and $3,000 underreporting of payments to debtor’s parents, resulted from either misunderstanding or “utter incompetence” of debtor’s attorney.