By: Mary Ann Pekara
January 22, 2011
A U.S. bankruptcy judge recently ruled that Miami developer Michael Stern will not be able to discharge his debts through Chapter 7 bankruptcy.
The U.S. Bankruptcy Trustee's office had previously claimed that Stern had violated the bankruptcy code in several ways and thus was not eligible to discharge his debts through a bankruptcy proceeding, according to the South Florida Business Journal. The office alleges that Stern had failed to disclose real estate transactions and failed to keep a proper record of accounts related to his debts. Furthermore, he failed to pay monetary sanctions imposed upon him by the bankruptcy court.
Prior to the denial of his filing, he was also reportedly threatened with arrest by a judge for failing to appear to scheduled hearings related to his filing. Stern had denied many of these allegations, according to the news source.
Chapter 7 bankruptcy is a form of bankruptcy often filed by consumers and businesses. It involves the liquidation of non-exempt assets to pay off creditors. In a Chapter 7 bankruptcy, many consumer debts are discharged.