OMISSIONS ON SCHEDULES RESULT IN DENIAL OF DISCHARGE UST v. Wilson (Bankr. C.D. Il. 2004) The bankruptcy court concluded that the Debtor demonstrated a “continued pattern . . . of making omissions and false statements in his bankruptcy schedules” and exhibited reckless indifference for the truth, notwithstanding any memory loss. The bankruptcy court based its...Read More

U.S. 7th Circuit Court of Appeals IN THE MATTER OF KMART CORP. (02/24/04 – No. 03-1956) Bankruptcy judge erred in permitting debtor to pay in full its pre-petition debts to any vendor deemed “critical” in its unilateral estimation. Preferential payments to a class of creditors are proper only if the record shows the prospect of...Read More