Judge Brian F. Kenney

Jun 1, 2023

Debtor can’t explain loss of millions of dollars

Where the U.S. Trustee showed there had been an unexplained loss of millions of dollars of assets to meet the debtor’s liabilities, and the debtor failed to provide a satisfactory explanation for the loss of the funds, the trustee prevailed on this claim. Background Bin Hao is an individual residing in Fairfax County. Through Qidian […]

Apr 11, 2023

Proofs of claim survive challenge by debtor

Where a debt collection company filed two proofs of claim based upon credit card debt owed by the debtor, the debtor admitted she owed the debt to the credit card company and there was proof the debts were assigned, the debtor’s argument that she had no credit relationship with the assignee was insufficient to overcome […]

Feb 1, 2023

Bankruptcy court abstains from suit against debtor

Where the debtor sold her house, but the mortgage holder received no proceeds, and it then sued the debtor, purchasers and new mortgage holder in circuit court, the bankruptcy court will abstain from the suit. The circuit court can adjudicate the debtor’s affirmative defense of discharge. Background Dee Arnolds filed a Chapter 7 petition with […]

Striking fee agreement
Dec 26, 2022

Dischargeable: Ex-attorney clears costs related to license revocation

A former Virginia attorney who consented to a revocation of his license in 2021 had most of the costs associated with the revocation discharged by the U.S. Bankruptcy Court for the Eastern District of Virginia. Stemming from the revocation, the Virginia State Bar assessed costs against the former attorney of nearly $5,000 — the majority […]

Dec 8, 2022

Ex-attorney discharges fees related to license revocation

Where a former attorney was assessed various costs by the Virginia State Bar incurred in connection with the revocation of his license, the certified mailing fees, copying invoices and court reporting fees were dischargeable. However a $1,000 administrative fee was a penalty that was nondischargeable. Background This opinion addresses whether costs assessed by the Virginia […]

Sep 15, 2022

Subchapter V case converted to Chapter 7

Where there was evidence of bad faith conduct by the debtor, a continuing loss to or diminution of the bankruptcy estate and the absence of a reasonable likelihood of rehabilitation, a conversion from Subchapter V to Chapter 7 was in the best interests of the creditors. Background This matter comes before the court on the […]

Jul 25, 2022

Debtor may claim funds were ‘earnings’

Where the debtor previously claimed that money in his personal bank account belonged to his company, the court rejected this argument and ordered the money to be turned over to the trustee, and the debtor then claimed that 75% of the funds were exempt as “earnings” under Virginia Code § 34-29, judicial estoppel did not […]

Apr 27, 2022

Unreasonable delays prejudicial to creditors

Where a debtor and his wife were a single economic unit, but he nevertheless excluded her income from four of his Chapter 13 reorganization plans, resulting in an unreasonable delay that was prejudicial to creditors, the case is dismissed. Background The debtor, Jae Hong Oh, is an individual residing in Fairfax. He is married, but […]

Apr 27, 2022

Debtor twice acted in bad faith

Where a debtor materially and intentionally understated the value of real property on his schedules, and intentionally purchased a new vehicle with the intent to reduce his disposable monthly income, he acted in bad faith. Background Stephen Neuman Asamoah is the debtor. This matter comes before the court on the Chapter 13 trustee’s motion to […]

Dec 6, 2021

Fraudulent transfer counts dismissed

Where the trustee sought to set aside an alleged fraudulent transfer of real property, but the property didn’t belong to the debtors and was instead held by an LLC in which they had an interest, the fraudulent conveyance and transfer counts were dismissed. Background Legacy Wealth Properties LLC is a Virginia limited liability company. It […]

Jul 30, 2021

‘Reckless’ failure to list account nets dismissal

Where the debtor failed to list a savings account on her Chapter 13 schedule, her case was dismissed with prejudice for 90 days because her failure was at least the product of a reckless disregard for the truth. Background This matter came before the court on the trustee’s opposed motion to dismiss the debtor’s Chapter […]

Mar 4, 2021

First-time homebuyer IRS credit is not dischargeable

A $7,500 first-time homebuyer credit that is recaptured by the IRS over the next 15 years is a tax that is not dischargeable in bankruptcy. Background The debtor purchased a home with his mother and his sister in 2008. In his income tax return for that year, he claimed a first-time homebuyer credit of $7,500. […]

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