Pereira v. Young (In Re Young)
This memorandum decision from the U.S. Bankruptcy Court for the Eastern District of New York addresses an adversary proceeding where John S. Pereira, the Chapter 7 trustee, sought to deny the debtor, Ginger Young, a discharge in bankruptcy. The Trustee raised objections under three sections of the Bankruptcy Code, alleging the debtor failed to keep adequate records, knowingly withheld information, and could not satisfactorily explain the loss of assets totaling approximately $140,000 from a property sale and IRA/pension withdrawals. Judge Elizabeth S. Stong considered the debtor's defense of being a victim of severe domestic and financial abuse, supported by expert testimony from Laura Boyd, MSW. The court found the debtor's explanation credible and justified her inability to produce complete financial records and account for the asset disposition due to the traumatic circumstances. Consequently, all of the Trustee's objections to the Debtor's discharge were denied.