Discharge and Dischargeability
Lakelaw is equally adept in pursuing or defending complaints to bar debtor’s discharge and complaints to bar dischargeability of debt.
In representing trustees, complaints to bar discharge are often effective in locating assets for an estate where recovery seemed hopeless. And even if assets are not recovered, barring discharge is often an effective means to assure that assets might be recovered in the future. In representing debtors, creditors, particularly banks, might decide to file complaints to bar dischargeability of debt, particularly if they believe that the debtor has been hiding assets or if the debtor gave a false financial statement to the bank.
In either event, such matters require dedicated and experienced counsel.
Case Study – Discharge
David Leibowitz was serving as a trustee for a former banker. This debtor had millions in financial transactions but no documentation as to any of them. He and his wife had hundreds of thousands of dollars in credit card debts but could not account for anything that had been purchased with these funds. Leibowitz filed a complaint to bar discharge. After trial, discharge was barred. Leibowitz v. Tanglis, 344 B.R. 563 (Bankr. N.D. IL 2006).
Case Study – Dischargeability
Lakelaw represented debtors who had obligations in excess of $2 million to a bank. Lakelaw filed bankruptcy on behalf of all of them. The bank sued to bar the debtors’ discharge and to seek a determination that the debts were non-dischargeable. After a vigorous defense but without the need for trial, Lakelaw resolved the bank’s claim for less than 25% of the original demand.
