In re: Blasingame, No. 15-8008 (6th Cir. 2016)
Annotate this CaseDebtors filed a voluntary Chapter 7 bankruptcy petition in 2008, signed by Fullen as the attorney of record. The original petition, schedules, and statement of financial affairs (SoFA), did not disclose Debtors’ interests in several trusts and corporations, annuities, property held for others, bank accounts, and an assignment to Grusin. The Trustee required both Debtors to submit an affidavit, affirming that they had read and signed their documents; that they were personally familiar with the information contained in the documents; and that, to the best of their knowledge, that information was true and correct. During the section 341 Meeting, Debtors testified under oath that they had helped prepare, had read, and had signed their bankruptcy petition; that it listed all of their assets and liabilities; that the information contained in their schedules and SoFA was true; and that the statements in their Affidavits were true. The SoFA and schedules were amended multiple times. The Trustee and creditors conducted extensive discovery and filed an adversary proceeding, seeking denial of discharges. The bankruptcy court removed Fullen and Grusin as counsel for Debtors, imposed sanctions on the attorneys, and, after a trial with new counsel, denied discharges pursuant to Bankruptcy Code sections 727(a)(2)(A) and (B) and 727(a)(4). The Sixth Circuit Bankruptcy Appellate Panel affirmed the denial of discharges under section 727(a)(4) for making false oaths. Separately, the Panel vacated sanctions against Grusin.
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