Lussier v. Sullivan (In Re Sullivan), 455 B.R. 829

Debtor Sullivan and Lussier had a longstanding domestic relationship and share a child; Lussier loaned him about $136,000 for real estate ventures and deposits for the property at 121 Albatross Road in Quincy, MA.
The Debtor deeded the property to himself, refinanced the mortgage, and Lussier’s liability on the promissory note was released; refinanced funds were paid back to Lussier by the Debtor.
Lussier obtained a $100,000 writ of attachment on the Property in January 2007; litigation related to the Florida property loan remained pending in state court.
The Debtor filed a Chapter 7 petition in November 2008; schedules listed a $300 Citizens Bank account, a 1970 Chevelle valued at $9,500, and Lussier as holder of a $100,000 unsecured claim and a $2,015 claim on Schedule E.
Lussier later alleged omission of a Rolex watch and undervaluation/omission of assets (bank account and Chevelle) in Schedule B; a §341 meeting raised discovery issues about the Rolex.
A 2010 trial on the merits concluded the Debtor failed to prove Lussier lacked standing and that he knowingly and fraudulently made false oaths by omitting/undervaluing assets; the bankruptcy court denied discharge under §727(a)(4)(A).

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether Lussier has standing to object to discharge	Lussier is a creditor with a claim against the Debtor.	Lussier is not a creditor and thus lacks standing.	Lussier has standing as a creditor under §727(c)(1).
Whether the Debtor had ineffective assistance of counsel	N/A	Civil cases do not grant a Sixth Amendment right to counsel in bankruptcy.	No constitutional right to effective assistance of counsel in bankruptcy proceedings; argument rejected.
Whether the Debtor knowingly and fraudulently made a false oath under § 727(a)(4)(A)	Debtor intentionally omitted/undervalued assets in Schedule B (Rolex, bank account, Chevelle).	Omissions were inadvertent or based on misunderstanding; not knowingly fraudulent.	Findings supported that Debtor knowingly and fraudulently omitted/undervalued assets; denial of discharge affirmed.

In re Tully, 818 F.2d 110 (1st Cir. 1987) (fraud elements and burden shifts for § 727(a)(4)(A) discharge denial)
In re Grondin, 232 B.R. 274 (1st Cir. BAP 1999) (materiality and evidence standards for false oaths under § 727(a)(4)(A))