In RE Chapman-Williams (Case #01-13927)
Dec 01, 2001OUTCOME: Motion to Dismiss Denied
The US Trustee questioned a single mother's honesty because she purchased $1,100 of furniture two weeks prior to filing for bankruptcy, the $1,100 resulting from a $7,392 tax refund. The Court note ... d that the conversion of non-exempt to exempt assets on the eve of bankruptcy was not fraud per se and did not show bad faith in this case. The US Trustee also attempted to argue that the Debtor wasn't needy. That effort failed under the Debtor's testimony regarding her income and budget shortfalls.