In re: Chlad

Federal 7th Circuit Court
Civil Court
Case Number: 
No. 18-3056
Decision Date: 
May 2, 2019
Federal District: 
N.D. Ill., E. Div.

Record contained sufficient evidence to support Bankruptcy Ct. order that denied discharge of debtor’s debts in Chapter 7 bankruptcy proceeding, where two creditors filed adversary proceeding that contended that debtor omitted information in her petition that was material to debtor’s financial condition. Bankruptcy Ct. could properly find that certain real estate owned by debtor, debtor’s guarantee to bank on loan given to debtor’s company, debtor’s joint bank accounts and debtor’s use of alternative name in prior financial dealings were all not disclosed in bankruptcy petition. Moreover, Bankruptcy Ct. could properly conclude that debtor acted “fraudulently” by omitting said information from her petition with intent to deceive court and creditors, where record showed that: (1) debtor took active role in her financial affairs and was aware of her assets and liabilities; (2) debtor supplied information to her attorney who reviewed with debtor each page of petition before petition was filed; (3) said omissions deprived court and creditors accurate account of debtor’s financial affairs; and (4) said omissions underscored over-arching pattern of false statements that reflected disregard for truth.