Court: Bankrupt woman must pay $47k

[IHateToBeEmo]

May 18, 2011

A former Mullan, Idaho, woman now living in Oregon is required to pay nearly $50,000 in restitution for concealing property during a bankruptcy filing.

The $47,927.95 restitution is the amount Vicki Jean Fehrs, 56, earned from the sale of a property in Mullan she'd transferred to her son before filing for Chapter 7 bankruptcy in U.S. Bankruptcy Court in Idaho in 2006, the U.S. Attorney's Office said today.

After settling the case in 2006, Fehrs sold the property and used some of the money to buy a home in Washington state.

Fehrs failed to disclose the sale proceeds to the trustee or creditors in her bankruptcy case and was charged in U.S. District Court with contempt, a misdemeanor, for disobeying a lawful order of a bankruptcy court.

She pleaded guilty in March and was sentenced Tuesday. She'll be on probation for five years.

http://www.spokesman.com/blogs/sirens/2011/may/18/court-bankrupt-woman-must-pay-47k/

[tobee43]

i wish that article was more specific on how they found out about this woman's lying!!! i cannot believe someone didn't discloses something that is public record!!!

[IamOld]

Maybe it truly wasn't intentional...

[tobee43]

Maybe it truly wasn't intentional...

well after they call you 30 times or so...LOL!!! it's most likely intentional, one would think. i know that was true in our situation. we told them time and again they had the wrong person, they would repeat the phone number and we would explain it's a new number listing check with the phone company!

i mean, i don't know about the lady in this article, but speaking for us, these people just didn't care and just wouldn't stop. (until the complaints were filed).

[JackBondLove]

I suppose that in addition to the restitution, that any excess amount she owed is now not discharged?

[debee]

She quitclaimed the property to her son for $1, then filed bk. She didn't list the transfer on her SoFA, but it came out during creditor questioning at her 341. The creditor was her ex. She got the discharge. 4 months later, the property was sold. Her son was given $200 and she kept the rest. I read it here.

eta: According to this document, ex-boyfriend and the trustee raised the issue. Guessing it was the ex who brought it to the attn of the trustee.

Another link (better one) if anyone wants to read more on this here.

[jjim120]

It seems rather stupid to fail to list such property on bankruptcy forms, but many people seem to believe that anyone who files bankruptcy has money or property hidden somewhere. After our bankruptcy, we have had people say, in various terms, that you must have money hidden somewhere. We didn't. We were honest, hardworking people who had everything we owned tied up in our businesses and personal assets, even though each business account was set up by attorneys and supposedly was stand-alone. We lost them all. However, we have learned that, apparently, the partner on the project who, with his attorney, caused the fraudclosure that put us into bankruptcy, most likely has millions hidden out of the country and in his ex-wife and children's various "investment" accounts, many of them set up just before he made false accusations. We have also been told that anyone who is in business of any kind "should" set up some kind of untouchable offshore account or account in someone's else's name 'in case."