In the Matter of Cecil M. Jackson, Bankrupt v. A. S. Menick, Trustee in Bankruptcy of Cecil M. Jackson, Bankrupt

The appellant Jackson has been denied a discharge in bankruptcy pursuant to Title 11 U.S.C.A. § 32 , sub. c, for the following reasons: (1) He obtained property on credit from the Union Hardware & Metal Co. by submitting a false financial statement on April 25, 1952; (2) He obtained a loan from the Security First National Bank of Los Angeles by submitting a false financial statement on October 31, 1955; (3) He failed to satisfactorily explain the diminution of his assets; and (4) He swore to a false oath in filing his statement of unsecured debts. The order of the referee denying discharge was affirmed by the District Court, and Jackson has appealed. Two other objections to discharge, — that he failed to keep adequate records of his financial condition, and concealed secret records, — have been decided in his favor, and are not before us.

The financial statement given to the Union Hardware & Metal Co. in April, 1952, showed a net worth of $39,241.44. This favorable picture was produced by omitting all “personal” liabilities, that is, debts which had not been secured by his business, Jackson’s Toy Shop. Jackson testified that at that time, these undisclosed liabilities exceeded…