Source: https://www.losangelesbankruptcylawyerblawg.com/transfer-real-estate-debtor-one-year-filing-chapter-7-bankruptcy-petition-bar-discharge-debt-according-california-appellate-court/
Timestamp: 2019-04-20 07:15:18+00:00

Document:
The creditor was a patient of the debtor’s dental practice who had obtained a judgment for $310,000 in a malpractice lawsuit. He moved to dismiss the debtor’s second Chapter 13 case for bad faith in September 2010, based in part on the transfer of the Property to the trust. The debtor agreed not to oppose the motion to dismiss if he was not barred from filing a Chapter 7 case, so the court dismissed the Chapter 13 case.
The debtor filed a Chapter 7 petition in October 2011. The creditor filed a complaint under § 727(a)(2), based again on the transfer of the Property. The bankruptcy court granted summary judgment on the creditor’s complaint to the debtor, finding that the transfer occurred more than one year before the date he filed his Chapter 7 petition. The creditor had argued that the court should consider all three bankruptcy cases, beginning in March 2010.
The question for the BAP was whether the one-year lookback period was a strict one-year statute of repose, or if it was a statute of limitations that could be subject to adjustments by a court, known as “equitable tolling.” The only other reported case to consider this question with regard to § 727(a)(2) held that it is a statute of limitations, based on the three-year lookback period for tax debts in 11 U.S.C. §§ 507(a)(8)(A)(i), 523(a)(1)(A). Womble v. Pher Partners, 299 B.R. 810 (Bankr. N.D. Tex. 2003), citing Young v. United States, 535 U.S. 43 (2002). The BAP reached the opposite conclusion, noting that § 523 prevents discharge of certain specific debts, while § 727 prevents discharge of all debts. It held that the lookback period in § 727(a)(2) is a statute of repose, not subject to equitable tolling.
Bankruptcy attorney Devin Sawdayi represents individuals and families in the Los Angeles area in Chapter 7 and Chapter 13 bankruptcies. Contact us today online or at (310) 475-9399 to schedule a free and confidential consultation with an experienced and knowledgeable advocate.

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