Bankruptcy — Chapter 7, providing false, misleading statements

Posted May 10, 2019 4:15 PM

Where a debtor engaged in a pattern of omissions and false statements on financial disclosures, a bankruptcy court did not err in finding the debtor displayed a reckless disregard of the truth and was not entitled to discharge under Chapter 7.The 7th U.S. Circuit Court of Appeals affirmed a decision by U.S. District Judge John J. Tharp Jr.Monik Chlad is the sole owner of a real estate company named Lockwood Development Inc. Chlad’s husband Eric Vehovc worked for Lockwood as well. The two ran the company together.They …

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