David Winston Byrd

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Case 04-09427-8-JRL Doc 282 Filed 02/26/07 Entered 02/26/07 16:35:25 Page 1of4

SO ORDERED.

SIGNED this 26 day « 'f February, 2007.

A. Thomas Small
United States Bankruptcy Judge

UNITED STATES BANKRUPTCY COURT
EASTERN DISTRICT OF NORTH CAROLINA
WILMINGTON DIVISION

IN RE: CASE NO.
DAVID WINSTON 3YRD JR. 04-09427-8-JRL
DEBTOR
JAMES B. ANGELL, ADVERSARY PROCEEDING NO.
Chapter 7 Trustee for
David Winston 3yrd Jr., L-05-00314-8-AP
PLAINTIFF
v.

DAVID WINSTON BYRD JR.,

DEFENDANT .

N

MEMORANDUM OPINION
The trial of this adversary proceeding brought by James B.
Angell, chapter 7 trustee in the case of David Winston Byrd ur.,
to deny the debtor’s discharge pursuant to 11 U.S.C. § 727(a),
was held in Wilmington, North Carolina on February 20, 2007.
This bank -uptcy court has jurisdiction over the parties and

the subject metter of this proceeding pursuant to 28 U.S.C. §&§

AUTHENTICATED
U.S. GOVERNMENT
INFORMATION

GPO

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151, 157, and 1334, and the General Order of Reference entered
by the United 3tates District Court for the Eastern District of
North Carolina on August 3, 1984. This is a "core proceeding"
within the meaning of 28 U.S.C. § 157(b) (2) (J), which this court
may hear and dsatermine.

Mr. Byrd filed a petition for relief under chapter 11 of the
Bankruptcy Cod: on December 16, 2004. On May 19, 2005, an order
was entered bt’ this court converting the chapter 11 case to
chapter 7, ani James B. Angell was appointed trustee. on
January 8, 2007, the court entered an order allowing Mr. Byrd’s
attorney to wichdraw as counsel. At the time of this trial, Mr.
Byrd had not retained substitute counsel.

The trustee requests that Mr. Byrd’s discharge be denied for
failure to provide sufficient financial documents and
information. A: Mr. Byrd’s 341 examination the trustee requested
that Mr. Byrd provide the trustee with certain documents and
records, including the following:

a. The hooks and records, including financial statements,

ledg:rs, bank statements, check registers, and
canc:lled checks, for any business with which the

debt or was involved during the three years prior to

the iiling of the bankruptcy petition;

Case 04-09427-8-JRL Doc 282 Filed 02/26/07 Entered 02/26/07 16:35:25 Page 3 of 4

b. The ¢ebtor’s personal financial information, including
all bank statements and financial statements;

Cc. All contracts and appraisals for all real property in
which the debtor held an interest during the three
year:;s prior to the filing of the bankruptcy petition;
and

d. Fede:-al and state tax returns of the debtor for the
thre: years prior to the filing of the bankruptcy
peti':ion.

Mr. Byrd <.dmitted in his answer that he was asked to provide
the above documents to the trustee, and that he did not provide
the requested jocuments or information to the trustee. Mr. Byrd
did not appear at the trial to explain his failure to provide
the requested documents.

Section ‘'27(a) sets forth the exceptions to discharge
applicable to 1 chapter 7 case. Section 727(a) (3) disallows the
granting of a discharge where

the debtor has concealed, destroyed, mutilated,

falsified, or failed to keep or preserve any recorded

information, including books, documents, records, and
papers, from which the debtor’s financial condition or
business transactions might be ascertained, unless

such act or failure to act was justified under all the

circumstances of the casel[.]

11 U.S.C. § 7:7(a) (3). Section 727(a) (3) requires a debtor to

keep records in order to provide the trustee and "creditors

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sufficient inf>2rmation from which they can assess the debtor’s

estate and gen:ral financial posture." In re Farouki, 133 B.R.
769, 781 (Bankr. E.D. Va. 1991). The court has discretion to
determine whetllier the records produced by the debtor satisfy the
statutory requirements of § 727(a) (3). Farouki, 133 B.R. at
781.

In this case, the trustee requested that Mr. Byrd provide
specific finaicial documents and information to which the
trustee was eititled. The debtor had ample opportunity to
produce the requested documents, but he failed to comply with
the trustee’s request, and offered no explanation for his
failure to comoly. Accordingly, the court finds that the debtor
failed to prcduce any records or documents from which his
financial conlition might be ascertained, and he failed to
justify why tlose items were not produced. Because the debtor
did not provice sufficient financial records as required by §
727(a) (3), he is not entitled to a discharge.

Based on the foregoing, the debtor’s discharge is DENIED
pursuant to 11 U.S.C. § 727(a)(3). A separate judgment will be

entered accorcingly.

END OF DOCUMENT