Bankruptcy:Chapter 7- Denial of Discharge- Failure to Keep Records

Debtors filed a Chapter 7 petition; among their debts, debtors confessed judgment of approximately $400,000 in favor of a jeweler from whom debtors took possession of watches, earrings and ring collections. Although debtors returned multiple watches and a ring collection, they failed to provide evidence of the value of the returned items, that the items returned were the items received by the jeweler, or the whereabouts of unreturned jewelry

Where debtors’ failure to maintain adequate records to allow the bankruptcy court to determine the value of the transactions between debtors and creditor jeweler, bankruptcy court was justified in denying discharge.

Judgment is affirmed.

In re: Dykes (MLW No. 72253/Case No. 18-6006 – 12 pages) (Eighth Circuit, Bankruptcy Appellate Panel, Schermer, J.) Appealed from U.S. Bankruptcy Court, District of Minnesota