Attorney Denied Bankruptcy Discharge

This past week a local bankruptcy judge denied the discharge of an attorney and title agent for failure to maintain records.  All debtors have an obligation to preserve their financial records to be able to account for how they have spent their money.  A  debtor can be denied a bankruptcy for failure to keep these records.

As a Fort Lauderdale bankruptcy attorney,  it is often necessary to essentially audit my client before a decision is made to file bankruptcy.  Consider an individual who received an accident settlement of $50,000 two years ago.  I want to see the deposit and the bank statements to show what happened to the money.  A client might have refinanced her home and received $100,000  three years ago.  Show me the money!(or more specifically, show me where it went!)

In re Pertierra, 2012 Bankr Lexis 5220 (November 6, 2012)(Case no 10-13778), Judge Isicoff denied the discharge of an attorney.  The attorney had refinanced her home twice getting cash out of $800,000.  She also had taken cash advances of $150,000 and had credit card debt of $$323,000.  She did not keep records including bank statements.  There is often more than meets the eye as to why a case was filed,  but this result does not at all seem surprising.




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