Asked by tushig amarjargal on May 05, 2024
Verified
Dave owes $100,000 to Cindy and $100,000 to Connie.Both before and after Dave went into bankruptcy under Chapter 7,he engaged in faking records,withholding information,and concealing assets in order to avoid Cindy's debt.However,Dave did not behave this way in regard to Connie's debt.Because Dave had few assets and Connie's debt was unsecured,she got virtually nothing out of Dave's bankruptcy.The same is true regarding Cindy.Sometime later,therefore,Cindy and Connie sued Dave on the debt,once Dave becomes rich.Dave defends by saying that both debts are discharged.Is Dave right? Assume that each debt is a normal contract obligation.
Faking Records
The act of unlawfully altering or fabricating documents or records, often for deceptive purposes.
Concealing Assets
The act of hiding or failing to disclose assets to avoid legal responsibilities or to deceive creditors or other parties.
- Comprehend the juridical outcomes associated with debtor activities prior to and subsequent to declaring bankruptcy, inclusive of deceitful actions and their ramifications.
- Acquire knowledge on the guidelines and processes for the discharge of obligations in bankruptcy, inclusive of outliers.
Verified Answer
CR
Carlos ramirezMay 10, 2024
Final Answer :
No.Dave is wrong.Neither of the debts is discharged.The reason is that Dave engaged in legally unacceptable behavior such as faking records,withholding information,and concealing assets in order to avoid Cindy's debt.Discharges in bankruptcy are intended for honest debtors.Dave's acts bar him from being discharged.It does not matter that this behavior only occurred with respect to Cindy's debt.
Learning Objectives
- Comprehend the juridical outcomes associated with debtor activities prior to and subsequent to declaring bankruptcy, inclusive of deceitful actions and their ramifications.
- Acquire knowledge on the guidelines and processes for the discharge of obligations in bankruptcy, inclusive of outliers.