Vogeler filed for Chapter 7 bankruptcy in March 2007. Vogelers debts consisted of $11,000 in secured debt

Question:

Vogeler filed for Chapter 7 bankruptcy in March 2007. Vogeler’s debts consisted of $11,000 in secured debt represented by his automobile and $35,925 in unsecured debt. Vogeler’s assets on the petition date totaled approximately $2,785.00, all of which he claimed were exempt. Vogeler was unemployed at the time of filing and reported past earnings of $18,000 annually. Vogeler also reported monthly expenses of $1,617. In April 2007, Vogeler won $130,000.00 from the Kansas Lottery from which he received $90,692.89, after taxes. The bankruptcy trustee instructed Vogeler not to spend the lottery proceeds, but Vogeler subsequently spent the entire amount on new vehicles and non-emergency personal expenses. Vogeler continued his bankruptcy proceeding and requested a discharge of his pre-petition debts. The trustee sought to dismiss the bankruptcy petition on the basis that its continuation was in bad faith given the totality of the circumstances. Should the court grant the trustee’s motion to dismiss Vogeler’s bankruptcy petition? Does it make a difference that the lottery proceeds were post-petition and not part of the bankruptcy estate? Why or why not?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Dynamic Business Law The Essentials

ISBN: 9781260253382

5th Edition

Authors: Nancy Kubasek, M. Neil Browne, Daniel Herron, Lucien Dhooge, Linda Barkacs

Question Posted: