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Thomas H. Curran Associates prevails on barring discharge due to fraud by debtor

Thomas H. Curran Associates recently secured a victory on behalf of an institutional asset manager, where the Bankruptcy Court for the District of Connecticut held that the debt owed to our client from the debtor was not dischargeable. The debt was determined to be non-dischargeable because of the fraudulent statements, omissions, and other concealments that were made by the Debtor during his Bankruptcy case.

The Bankruptcy Court would ordinarily grant the debtor a discharge unless the debtor knowingly and fraudulently made a false oath or account. Here, Thomas H. Curran Associates proved that there were numerous false oaths in the debtor’s Schedules and Statement of Affairs, and multiple false statements made by him at his 341 meeting. Among various other false oaths and statements, the Debtor failed to disclose, and value, his membership interests in various LLC’s, the income he generated from his employment and operation of various businesses, his personal use of a mischaracterized bank account, the rental income he received from various residential properties, his interest in various insurance policies and obtainment of his real estate brokers and liquor license, his payments to his father’s debt, and the transfer of a restaurant. Additionally, the Debtor concealed and transferred at least $56,000.00 to a mischaracterized bank account. These misrepresentations and omissions were deliberate, intentionally fraudulent, and made with a reckless disregard for the truth.

Over a two-day trial, Thomas H. Curran Associates attorneys were able to prove by clear and convincing evidence that the debtor had an actual intent to hinder and defraud our client. The consequence of which was that the debtor’s obligation to our client was not discharged by the debtor’s Bankruptcy Proceeding.

Thomas H. Curran Associates represents a broad range of businesses and corporate entities, private equity funds, as well as governmental agencies and other interested parties in all phases of the bankruptcy process and in bankruptcy related transactions and litigation. As advocates and trusted business advisors, our well-established foundation of knowledge and understanding of our clients’ business and professional interests, enables our attorneys to deliver unparalleled individualized attention to our clients of all sizes with their bankruptcy, litigation and corporate transactional needs.

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