D. Erik Von Kiel obtained loans from the U.S. Department of Health & Human Services so that he could complete his education as an osteopathic physician. He works at the International Academy of Life (IAL) in Orem, Utah, for no salary but receives gifts from IAL that total $150,000 per year, or about $12,787 per month. He pays no taxes on these "gifts" and has received them since 2005. Dr. Von Kiel pays all but $1,000 to his ex-wife and nine children for their support. He has given up his practice, taken a vow of poverty, and works at IAL to concentrate on alternative medicine. He has signed over full authority for the management of his financial affairs to two individuals, who apparently failed to manage wisely. As a result, Dr. Von Kiel filed for bankruptcy in order to be discharged from his HHS loans. HHS says that Dr. Von Kiel should not be discharged because of bad faith. Who is correct and why? [In re Von Kiel, 461 B.R. 323 (E.D. Pa.)]

  • CreatedJune 06, 2014
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