UNITED STATES BANKRUPTCY COURT
NORTHERN DISTRICT OF CALIFORNIA
|DO NOT PUBLISH
This case disposition has no value as precedent and is not intended for publication. Any publication, either in print or electronically, is contrary to the intent and wishes of the court.
SCOTT ALAN SWANSON, No. 98-13441
CHARLES SIMS, Trustee,
v. A.P. No. 98-1273
SCOTT ALAN SWANSON,
Memorandum of Decision
In this adversary proceeding, the Chapter 7 trustee seeks to deny debtor Scott Swanson his
discharge. For the reasons stated below, the discharge will be denied.
Swanson admitted that for a time just before his Chapter 7 filing on September 11, 1998, he
gave his income checks to his live-in girlfriend, Jennifer Lorenzo, so that they would not be seized by
judgment creditors. The court would deny the discharge on this ground alone. Section 727(a)(2)(A) of
the Bankruptcy Code provides that the court shall not grant a discharge if, within one year of the filing
of the petition, the debtor made a transfer with the intent to hinder his creditors. Not only did Swanson
admit the transfer, he admitted the intent.
In addition, Swanson did not disclose in his schedules that there was some $3,700.00 of his
money in Lorenzo's bank account when he filed his petition. He answered "none" when asked to list his
cash on hand; "none" when asked to identify all bank accounts (even though his name was on the
Lorenzo account); and "none" to transfers made out of the ordinary course of business within one year
of the filing. All of these statements were knowingly and intentionally false, and made with the intent to
conceal the funds from creditors and the trustee. Accordingly, Swanson's discharge is barred by §
727(a)(2)(B) and § 727(a)(4)(A).
At the time he filed his petition, Swanson was a defendant in a state court suit brought against
him and Lorenzo and alleging that he had made fraudulent transfers to her. Despite this, Swanson
answered "none" in his statement of affairs when asked to list all suits to which he was a party.
Swanson asks the court to believe that he did not know about the suit, yet his attorney filed a pleading
entitled "Notice of Bankruptcy" in the state court just seven days after he filed the schedules and
statement of affairs. No amendment to the schedules was filed. The court finds it far more likely than
not that Swanson intentionally omitted the lawsuit in order to keep its allegations from the trustee. This
is further ground for denial of the discharge pursuant to § 727(a)(4)(A).
For the foregoing reasons, Swanson's discharge will be denied. The trustee shall recover costs
This memorandum constitutes the court's findings and conclusions pursuant to FRCP 52(a) and
FRBP 7052. Counsel for the trustee shall submit an appropriate form of judgment forthwith.
Dated: October 27, 1999 ________________________________