AutoSource Capital, Inc. v. Traina (In re Traina)

Chapter

MEMORANDUM DECISION

On June 28, 2011 AutoSource Capital, Inc. commenced this adversary proceeding seeking a non-dischargeable judgment against defendants Robert Traína and Anna Traína and the denial of their chapter 7 discharge under Bankruptcy Code §§ 523(a)(2)(A) and 727(a)(2) and (4), respectively. During the course of this adversary proceeding, this court dismissed the §§ 727(a)(2) and 523(a)(2) claims, and on September 16, 2013, it conducted a trial on the remaining § 727(a)(4) claim for relief. This memorandum decision constitutes this court’s findings of fact and conclusions of law under Fed. R. Bankr. P. 7052.

From August 2001 through August 2010, the Traínas (who were a married couple) resided at a single family residence located at 1262 Hillcrest Drive in San Jose, California. During most of that decade, Anna Traína was a licensed real estate broker who operated a real estate brokerage firm, Contempo Realty. 1 While Robert Traína was also a licensed real estate agent, he worked primarily as a general contractor. The Traínas also owned several investment properties, including a 50 unit apartment building in Stockton, California, and a town home and…