Maryland Bankruptcy Discharge Objection Forces Settlement
Investor Client bought a $1.5 million judgment against debtors who filed Chapter 7 bankruptcy. Maryland bankruptcy lawyer Ronald Drescher dug into debtors’ schedules and found the following material misstatements:
- Debtors valued their home at $270,000, at least $80,000 less than Zillow.com value;
- Husband understated his high income by omitting nearly $100,000 in annual commissions;
- Debtors listed only $98,000 in “joint IRAs” but paystub analysis disclosed that both husband and wife had regularly contributed thousands into individual 401k plans that should have been disclosed in the bankruptcy;
- Failure to list accountants and other professionals in the Statement of Financial Affairs;
- Nondisclosure of husband’s income as an adjunct professor.
Unable to cope with the ongoing stress of the litigation and the fear that their errors could cost them a discharge in bankruptcy, Debtors had no choice but to settle with the Investor Client for a sum well in excess of the amount the Client paid for the judgment. The deal was structured so that Client’s claim was nondischargeable for an amount well in excess of the settlement amount, with the Debtors having an incentive to stay current on the settlement.
A Track Record of Success in Maryland, Virginia, Pennsylvania, & Delaware Commercial Litigation & Bankruptcy Cases
DISCLAIMER: Please note that every case is different and these verdicts and settlements, while accurate, do not represent what we may obtain for you in your case.
