By: Derek Hawkins//June 3, 2019//
7th Circuit Court of Appeals
Case Name: Monk Chlad v. Mitchell Chapman
Case No.: 18-3056
Officials: WOOD, Chief Judge, and SCUDDER and ST. EVE, Circuit Judges.
Focus: Bankruptcy – Fraud
In 2013 Monik Chlad and her husband, Eric Vehovc, filed a joint petition under Chapter 7 of the Bankruptcy Code seeking to discharge about $5 million of debt. After Chlad and Vehovc filed financial disclosures in relation to their petition, two creditors brought an adversary proceeding objecting to the discharge. Alleging that the filings omitted information material to the debtors’ financial condition, the creditors invoked 11 U.S.C. § 727(a)(4) and sought to prevent the discharge. Following a bench trial, the bankruptcy court denied the discharge, finding that the omissions reflected material false statements made with fraudulent intent. The district court affirmed, and only Chlad has appealed. Seeing no clear error in the bankruptcy court’s factual findings, we too affirm the denial of discharge.
Affirmed