In Re Deborah M. Cox, Debtor. Paul Lansdowne, Trustee v. Deborah M. Cox

Deborah Cox appeals from the district court’s decision affirming the bankruptcy court’s finding that she was not entitled to a discharge under 11 U.S.C. § 727 (a)(3) because she was not justified in failing to maintain books and records of her financial circumstances. We have jurisdiction under 28 U.S.C. § 158 (d). We reverse.

I. BACKGROUND

This is the second time this case has come before this court. See In re Cox, 904 F.2d 1399 (9th Cir.1990). The facts of this case are adequately set forth in our previous decision, see id. at 1400 , and need only be summarized here.

Stephen and Deborah Cox were married in 1973 and resided thereafter in or around Medford, Oregon. After giving birth to the couple’s first child, Ms. Cox quit her teaching position and Mr. Cox provided the family’s sole support. Mr. Cox was involved in more than a dozen business enterprises, including several corporations and partnerships involved in real estate, diamond and bullion trading, and other investments.

During the course of their marriage, Ms. Cox signed numerous documents by which she became a co-owner of at least 14 parcels of real estate, a partner in at least two partnerships, and an officer or…