Kaler v. Charles (In re Charles), 474 B.R. 680

Debtor Dennis J. Charles filed a voluntary Chapter 7 petition on August 17, 2010.
Debtor’s schedules valued his house at $225,000 with secured debt listed at $258,000.
Amended Schedule D reduced the secured debt by $9,636.58 from the original amount.
Debtor valued 50% interests in Tru Wall Concrete, Inc. and Tri-Star Properties, LLC at $1.00 each.
In January 2011, Debtor amended the Statement of Financial Affairs disclosing $15,000 in dividends from Tru Wall and substantial income from business entities.
Trustee filed an adversary proceeding on February 10, 2011 seeking denial of discharge under § 727(a)(2)(B) and (a)(4)(A); bankruptcy court denied discharge after trial on September 29, 2011.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the discharge denial under § 727(a)(4)(A) was proper	Trustee proved multiple false oaths with fraudulent intent	Debtor valued assets in good faith and without fraudulent intent	Yes; false oaths established; affirmed

Korte v. Internal Revenue Serv. (In re Korte), 262 B.R. 464 (8th Cir. BAP 2001) (preponderance standard; standard for false oaths and credibility)
Allred v. Vilhauer (In re Vilhauer), 458 B.R. 511 (8th Cir. BAP 2011) (proof by preponderance; strict construction in favor of debtor but required elements)
Sears (In re Sears), 246 B.R. 341 (8th Cir. BAP 2000) (courts give deference to bankruptcy court; standard of review)
Freese (In re Freese), 460 B.R. 733 (8th Cir. BAP 2011) (elements of false oath; materiality and intent)
Chalik v. Moorefield (In re Chalik), 748 F.2d 616 (11th Cir. 1984) (materiality of false oath; related to debtor’s estate)
Mertz v. Rott, 955 F.2d 596 (8th Cir. 1992) (materiality and intent; omissions qualify when fraudulent)
Anderson v. City of Bessemer City, 470 U.S. 564 (1985) (standard for clearly erroneous findings; credibility of witnesses)