The bankrupt applied for an absolute discharge from bankruptcy, which was opposed by his former spouse and the bankruptcy trustee.
The bankruptcy was filed shortly after the former spouse obtained a family law judgment for equalization and costs.
The court found that the bankrupt had transferred significant assets to his mother and a business associate prior to bankruptcy to defeat his former spouse's claims, and failed to disclose these transfers or a personal injury settlement to the trustee.
The court held that the bankrupt's conduct was evasive and untruthful, and that he used the bankruptcy process to avoid his family law obligations.
The court refused an absolute discharge and granted a conditional discharge requiring the bankrupt to pay $170,036.50 to the trustee, representing the compromised equalization claim and costs.