[COLUMN] Who is an honest or good faith debtor? —

THE honest debtor is the only debtor who can obtain a bankruptcy discharge. But who is an honest debtor?

If we follow the layman’s definition just to get an idea of ​​who an honest debtor is, then the honest debtor is one who is in good faith when filing for bankruptcy. Of course, this definition is still vague. The courts analyze the question of good faith and therefore the question of the honesty of the debtor in question on a case-by-case basis and on the basis of the past and present behavior of the debtor in relation to his debts and his bankruptcy. Although the right to bankruptcy is enshrined in the US Constitution, it is up to the courts to determine who an honest debtor really is.

So let’s look at a real case that I dealt with a long time ago.

The debtor was married, had no non-exempt assets and had no income when her Chapter 7 case was filed. She wanted to offload $90,000 from credit cards. A portion of these debit cards of about $60,000 used to gamble. Her husband was self-employed as a “handyman” and earned around $2,500 a month, but was supposed to inherit $3 million from his father. However, his brother was full of greed and managed to keep the entire $3 million for himself. Almost like a Cain and Abel relationship between brothers.

After the case was filed, a creditor objected to the release claiming that the debtor had completed the credit application stating that she earned $48,000 per year. Another creditor also objected to the discharge of his credit card for the same reasons. Both creditors said that if they had known the truth that she in fact had no income, they would not have given her any credit.

The UST filed a motion to dismiss the Chapter 7 case pursuant to 11 USC § 707(b)(3) with prejudice. This section of the bankruptcy code allows the court to dismiss a case for bad faith or on the basis of the “totality of the circumstances” of the case, even if there is no presumption of abuse under the law. resource test. What does “with prejudice” mean? This means that if the court grants the motion to dismiss the UST, the debtor can never file for bankruptcy in the United States. It’s the same as having the “A” engraved on your forehead to identify you as having been tried and found guilty of “adultery”. It doesn’t mean you’re a straight A student. I don’t understand why this society should do this to its own citizens who should have their own freedom to have sex with whoever they want; it’s between consenting adults after all. At least it’s more humane than the “honor” killing of their own daughters by their own family members for something as insignificant as your sister wearing a pair of jeans. It’s a definite escalation to have the scarlet “A” tattooed on your forehead. This probably only applies to their wives. If you are male then I guess it would be tattooed on your ass where there is no public exposure.

The court granted the motion to dismiss with prejudice and here is what the court said:

“There is no rational basis to believe that she could pay off her debts with gambling proceeds because she had no history of winning significant money, at least not enough to justify more than $50,000. cash advances. Compare In re Karelin, 109 BR 943, and In re Kong(even the giant gorillas need debt relief, it seems)239 BR815. Likewise, there was little rational basis for counting on her husband’s potential stock market profits. The debtor herself admitted that her husband always lost the money he invested and never saw any significant profit (apparently the husband did not have a brain structure similar to Warren Buffet, but did one that looked more like the aforementioned giant gorilla). The debtor’s husband admits that in 9 of the last 10 years he suffered net losses on the stock market. The only year he made a profit, it was less than $5,000. In addition, the Court finds that the debtor did not reasonably rely on the possibility that her husband’s brother could actually pay the million dollars he owed since: 1. More than 20 years have passed without 2. His brother King Kong beat his chest hard every time he asked for his share of the 3.0 million dollars or acted like Al Pacino in “Scarface”, took out his AK 47 and said “say hello to my little one friend” to obtain and retain his interest in the family business of manufacturing high-end caskets made from yellow jade from the magic mountain 3. The fact that no one has ever taken legal action such as the hiring of gangsters to enforce the contact in question…Finally, the debtor’s addiction to help of any kind from the Aladdin’s lamp genie she claimed to have had just gotten at a flea market in Tijuana and was on the point to obtain the password so that the genius so was questionable. In sum, none of the debtor’s wishful thinking, even if made on a starless night of a blue moon, was a legitimate basis for accumulating unnecessary additional debt. If, for example, she had contracted these obligations to meet the expenses of daily living or to pay medical expenses, the situation could be different. Unfortunately, this is not the case here. »

Obviously, the court concluded that the debtor was in bad faith and considered all of the circumstances to dismiss her case with prejudice.

Here is the most important thing you have to do, get down on your knees, be humble and sincerely ask God for his help to guide you to be an honest debtor. Otherwise, Lucifer is always busy giving you ideas on how to become a dishonest debtor. So if you are truly an honest and blameless debtor like Daniel before the eyes of God, don’t despair. God has made a way to save you and give you debt relief.

In chapter 6 of the book of Daniel, the prophet Daniel was sentenced by King Darius to die in a lion’s den. If you are in Chapter 7 and the UST has filed a motion to dismiss your case with prejudice, you are now like Daniel.

So Daniel is now in the lion’s den, ready to be eaten. But now, our God sends an angel into the lion’s den and shuts their mouths!

“Daniel, servant of the living God, your God, whom you serve without ceasing, was he able to deliver you from the lions? asks King Darius.

“May the king live forever!” My God sent his angel, and he shut the mouths of the lions. They didn’t hurt me, because I was found innocent in his eyes. I have never done wrong in front of you either, Your Majesty.

“I issue a decree that in every part of my kingdom people should fear and worship the God of Daniel. For he is the living God and he abides forever, his kingdom will not be destroyed, his dominion will never end. He saves and He saves; He performs signs and wonders in the heavens and on the earth. He delivered Daniel from the power of the lions.

Look at the incorruptible body of Blessed Carlo Acutis who died at age 15 in 2007. You can view his body in Rome, Italy, now 14 years after his death. He seems to sleep in his jogging and his rubber shoes! It is a perfect example of a continuing sign on earth that the God of Daniel, our God, my God, is almighty and almighty that he even suspends the natural laws of biology and physics without any effort. He raised His one and only beloved son from death on the cross. He has power over death.

In fact, I thought, “What would other religions believe if they actually saw the incorruptible body of Blessed Carlo Acutis?” I think even Buddha, if he were alive today, would truly believe that Yahweh is the only True God. No need to think about reincarnation and nirvana because his incorruptible body is available for all to see in Rome, Italy. We won’t need any sort of explanation of the effectiveness of modern mummification. Come on, man, this is shit. The truth is in plain sight. Believe in your own eyes that the one true God is almighty and his name is Yahweh, “I am who I am”.

If you need debt relief, schedule an appointment to see me. I will analyze your case personally.

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DISCLAIMER: NONE OF THE ABOVE IS CONSIDERED LEGAL ADVICE. EACH CASE IS DIFFERENT.

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Lawrence Bautista Yang specializes in bankruptcy, business, real estate and civil litigation and has successfully represented over five thousand clients in California. Please call Angie, Barbara or Jess at (626) 284-1142 for an appointment at 20274 Carrey Road, Walnut, CA 91789 or 1000 S. Fremont Ave., Mailstop 58, Building A-10 South Suite 10042, Alhambra, CA 91803.

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