Johnson v. Sherman (In re Sherman)
Opinion
Lead Opinion
Russell, J.
MEMORANDUM OF DECISION DENYING DEBTORS’ DISCHARGE
INTRODUCTION
Tales of debtors operating businesses, filing bankruptcy and immediately re-opening the same businesses have been often told.
The matter presently before the Court presents such a course of events and more.
On November 2, 1983, the debtors Claude Anthony Sherman and Theresa Rene Sherman filed their joint Chapter 7 petition indicating being associated with (aw) Sherman Pet Enterprises, Inc. and formerly doing business as ,(fdba) Tony’s Pets, and Dog & Cat Laundromat.
On February 3, 1984, the plaintiff Helen R. Johnson filed her Complaint objecting to the Debtors’ discharge pursuant to § 727(a)(2) & (4) alleging that the debtors (1) fraudulently transferred, sold and concealed certain assets not listed in the schedules, and (2) fraudulently failed to include certain assets and debts in their schedules.
By attempted sleight of hand, now you see it, now you don't, and by outright deceit the debtors tried to paint a picture of their business affairs quite at odds with the truth.
TONY’S PETS #
In August, 1980, the debtors purchased Mrs. Johnson’s pet shop, The Plush Poodle at 2030 South Atlantic Blvd., Monterey…