Joe DiOrio was recently interviewed as part of a July Rhode Island Lawyers Weekly article entitle: Bankruptcy Misconduct Claims Not Precluded by Temporal Ineligibility,” in which a “creditor’s complaint seeking a denial of a bankruptcy discharge based on the debtor’s alleged fraudulent conduct can move forward, even though that debtor was not eligible for discharge after previously receiving one in a case filed less than eight years prior.”
The matter of first impression was decided by US Bankruptcy Judge Diane Finkle in June of 2018.
From the article:
“There were material omissions related to the debtor’s bankruptcy petition, such as failure to maintain adequate business records, and the court basically held that this particular creditor was aggrieved by that and had standing to bring a complaint,” said DiOrio. “The judge was very concerned about substantive rights.”
Summarizing what the judge described as the “important public policy issues” implicated by the case, DiOrio said a debtor cannot take advantage of a first bankruptcy and file a second one before being eligible, “ and then say, ‘ never mind’ if a creditor comes in seeking a denial of discharge.”
To learn more, contact Joe DiOrio.