Hughes

OVERVIEW

Chapter 7 debtor Beatrice Rebecca Lawson (“Lawson”), an attorney, appeals the Bankruptcy Appellate Panel’s affirmance of the bankruptcy court’s order denying Lawson a discharge in bankruptcy. Pursuant to 11 U.S.C. § 727 (a)(2)(A), judgment creditor Carl Hughes, who had obtained a $420,000 judgment against Lawson in a state-court malpractice action, objected to a discharge. On the day of the state-court verdict, Lawson recorded a deed of trust against her residence in favor of her mother and subsequently secured a loan against the residence by subordinating her mother’s deed of trust. Lawson contends that the bankruptcy court clearly erred in finding that the transfer of real property to her mother was part of a scheme to conceal property from creditors. We have jurisdiction under 28 U.S.C. § 158 (a), and we affirm.

BACKGROUND

In 1990, Lawson represented Hughes in a personal injury lawsuit for damages arising out of an industrial accident. 1 Hughes’s lawsuit was dismissed, and he sued Lawson for malpractice. On January 7, 1991, a jury awarded Hughes a judgment of $750,000. 2 Also on January 7, Lawson recorded a $350,-000 deed of trust in favor of her mother on her…