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Omission of bonuses from debtor's bankruptcy schedules was done with... fraud...

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    Omission of bonuses from debtor's bankruptcy schedules was done with... fraud...

    January 12, 2006: Omission of bonuses from debtor's bankruptcy schedules was done with requisite fraudulent intent.

    That a Chapter 7 debtor, in failing to schedule employment bonuses that accounted for roughly one-quarter of his annual income, had acted with fraudulent intent, as required to support a denial of his discharge under the "false oath" discharge exception, could be inferred from the surrounding facts. The debtor regularly received such bonuses, based on the performance during the preceding quarter of a business which he managed, since he accepted the general manager's position. Moreover, the preceding year had been a banner year for the business. Finally, the debtor was able to accurately disclose his annual income, including bonuses, in a separation and property settlement agreement prepared within 90 days of his bankruptcy schedules.
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