Opinion ID: 2995620
Heading Depth: 3
Heading Rank: 1

Heading: Redemption for a Less Than Honest

Text: Debtor Though it does not cite a specific case in support, the bankruptcy court’s reasoning is in line with a doctrine announced in First Beverly Bank v. Adeeb (In re Adeeb), 787 F.2d 1339 (9th Cir. 1986). In Adeeb, the Ninth Circuit allowed the granting of a discharge petition over a creditor’s objections because the debtor disclosed the previous transfers to the creditors and was making a good-faith effort to recover the property at the time an involuntary bank ruptcy petition was filed. Id. at 1346. Adeeb, after being threatened by this creditors, consulted with an attorney who advised him to transfer title to several parcels of property to third parties for no consideration. Id. at 1341. After consulting with a second attorney, Adeeb told his creditors about the transfers, and the creditors filed for an involuntary bankruptcy. Id. Adeeb attempted to recover the properties, and the creditors objected to the discharge based on section 727(a)(2). Id. The Ninth Circuit interpreted the term transfer in section 727(a)(2) to mean ’transferred and remained transferred’ because, they concluded, Congress intended to deny discharge only to debtors who try to keep assets hidden until after they obtain their discharge in bankruptcy. Id. at 1344-45. Adeeb, as other courts have concluded, appears to contravene the plain language of the Code. See, e.g., Davis v. Davis (In re Davis), 911 F.2d 560, 562 (11th