11th Circ. Says Use Of Biz Account Bars Ch. 7 Debt Discharge

Law360 (May 6, 2021, 7:36 PM EDT) -- A man who used his company's business account to "get by financially" after being hit with a $20 million judgment and more than $300,000 in back taxes can't get those debts discharged in bankruptcy, the Eleventh Circuit has ruled.

The appeals court on Wednesday affirmed decisions by both bankruptcy and district courts that determined Alabama doctor John Tomberlin could not have his debts discharged in Chapter 7 bankruptcy because he had intended to hinder and delay the Internal Revenue Service's attempts to collect the money he owed in back taxes.

On appeal, Tomberlin argued that he did not intend to defraud...

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