Two person, C and P filed for chapter 7 bankruptcy in the federal bankruptcy court. Two amended schedules were filed by debtors, after which the trustees requested for additional time to complete the investigation. The disclosure about FBM company was made in the third amendment. The trustees made a claim that C had failed to disclose his interest in FBM. The court agreed to the claim of trustees and discharge of debtor was denied. To explain: The risk to the debtor on the denial of discharge to conceal assets.

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John Bunker has assets of $130,000 and liabilities of $185,000 owed to nine creditors. Nonetheless, his cash flow is positive, and he is making payment on all of his obligations as they become due. I. M. Flintheart, who is owed $22,000 by Bunker, files an involuntary petition in bankruptcy under Chapter 7 against Bunker. Bunker contests the petition. What result? Explain.

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Chapter 15, Problem 3CT

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Case summary: Two person, C and P filed for chapter 7 bankruptcy in the federal bankruptcy court. Two amended schedules were filed by debtors, after which the trustees requested for additional time to complete the investigation. The disclosure about FBM company was made in the third amendment. The trustees made a claim that C had failed to disclose his interest in FBM. The court agreed to the claim of trustees and discharge of debtor was denied.

To explain: The risk to the debtor on the denial of discharge to conceal assets.

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John Bunker has assets of $130,000 and liabilities of $185,000 owed to nine creditors. Nonetheless, his cash flow is positive, and he is making payment on all of his obligations as they become due. I. M. Flintheart, who is owed $22,000 by Bunker, files an involuntary petition in bankruptcy under Chapter 7 against Bunker. Bunker contests the petition. What result? Explain.

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