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Month: September 2019


Discharge Denied When Debtor’s Case Fails the Smell Test

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In re Wilson, 2016 Bankr. Lexis 995 (Bankr. D. Md. March 30, 2016) Robert Horace Wilson (“Debtor”), a practicing orthopedic surgeon, filed a Chapter 7 bankruptcy case to stay the collection efforts of his largest creditor (“Creditor”). Debtor’s nonfiling spouse (“Spouse”) also was a physician. In his original Schedules, Debtor disclosed monthly income of nearly $18,000 and ownership interests in a medical practice and an entity called Spike Club, LLC (“Spike”), which owned a gentlemen’s club. Those Schedules, which by Debtor’s admission were incomplete and inaccurate, also disclosed only minimal bona fide claims against him apart from Creditor’s claim and dramatically understated Spouse’s income. Shortly after the petition date, Creditor filed a motion to dismiss the case on bad faith grounds. Thereafter, Debtor, with the assistance of an accountant, prepared and filed Amended Schedules. According to the Amended Schedules, the combined monthly income of Debtor and Spouse exceeded $48,000, and…Read More