Section 727(a)(4)(A): False Oath or Account

Section 727(a)(4)(A) provides that the court shall grant the


debtor a discharge, unless the debtor knowingly and


fraudulently, in or in connection with the case, made a


false oath or account. Examples of these false oaths


relating to the bankruptcy schedules include: understating


income, over stating expenses, intentionally omitting


assets, intentionally omitting debts owed to creditors, or


failing to identity fraudulent conveyances or preferential


transfers.



A party objecting to a debtor’s discharge must allege and


prove the following: (1) the debtor made a statement under


oath; the statement was false; (3) the debtor knew the


statement was false; (4) the statement was made with


fraudulent intent; and (5) the statement related materially


to the bankruptcy case.



Qualifying statements include statements in documents, such


as the bankruptcy schedules and statement of financial


affairs, filed with the petition and statements by the


debtor during examinations under oath---including the


Section 341 meeting of creditors.



Because a debtor is unlikely to admit having made a


deliberate misstatement, knowledge of falsity or fraudulent


intent may be found where the debtor acted with reckless


disregard for the truth. The requirement of materiality was


judicially created to ensure that debtors are not denied


discharge for inconsequential or technical misstatements. A


test for materiality is whether the false statement relates


to the debtor’s business transactions or estate or whether


it is pertinent to the discovery of assets or the existence


or disposition of property.
 
Warmest Regards,

Bob Schaller

Your Bankruptcy Advisor Blog

By: Attorney Robert Schaller (Bob's bio) of the Schaller Law Firm Click for Bankruptcy Lawyer Job Opportunities. You are invited to contact Attorney Schaller at 630-655-1233 or visit his website at Discharging Student Loans to learn about how the bankruptcy laws can help you.

Bob is a member of the National Bankruptcy College Attorney Network, American Bankruptcy Institute and the National Association of Consumer Bankruptcy Attorneys. For information about Chapter 7 bankruptcy Click Here

For information about Chapter 13 bankruptcy Click Here NOTE: Robert Schaller looks forward to the opportunity to talk with you about your legal issues. But please remember that all information on this blog is for advertising and general informational purposes only. Please read Bob's disclaimer. I recommend that you review a few other blogs that may be of interest to you. These blogs are identified in the right column and are set forth below: bankruptcy issues blog; bankruptcy and family law issues blog; bankruptcy and employment issues blog; adversary defense blog; and bankruptcy and student loan issues blog.