Case JDP Doc 77 Filed 09/27/11 Entered 09/27/11 14:10:45 Desc Main Document Page 1 of 5

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1 Document Page 1 of 5 David W. Newman, ISBN 8251 Mary P. Kimmel, ISBN 3786 Office of the United States Trustee United States Department of Justice 720 Park Blvd, Ste 220 Boise, Idaho (208) (208) [Facsimile] ustp.region18.bs.ecf@usdoj.gov Attorneys for the United States Trustee UNITED STATES BANKRUPTCY COURT DISTRICT OF IDAHO In re: ) Case No JDP ) Chapter 7 JOHN THOMAS BUJAK and ) PEPPER RAE BUJACK, ) ) Debtors. ) ) MOTION TO APPROVE WAIVER OF DISCHARGE UNDER 11 U.S.C. 727(a)(10) The United States Trustee moves this Court enter an order approving the Waiver of Discharge Under 11 U.S.C. 727(a)(10) (as to John Thomas Bujak only), filed on September 21, 2011 (docket number 74), for the reasons set forth below. 1. On November 1, 2010, Debtors John Thomas Bujak and Pepper Rae Bujak filed a joint voluntary chapter 7 petition in the United States Bankruptcy Court for the District of Idaho, case number JDP. On November 15, 2010, the Bujaks filed their bankruptcy schedules, statement of financial affairs and corresponding verifications. The Bujaks signed the corresponding verifications thereby verifying the truthfulness of the information contained in their schedules and statement of financial affairs under penalty of perjury. -1-

2 Document Page 2 of 5 2. The Bujaks schedule B indicates they had jewelry with a total value of $1, Their schedule C claims a $1, exemption in the jewelry. 3. On January 28, 2011, an order was entered extending the time for the United States Trustee to file a complaint objecting to the Bujaks discharge until March 18, The United States Trustee did not file a complaint before that date. 4. On January 31, 2011, Canyon County filed a complaint alleging causes of action under 11 U.S.C. 523 and objecting to the Bujaks discharge under 11 U.S.C. 727(a)(3) and (5) (unjustified failure to keep records, etc., and failure to explain loss or deficiency of assets). 5. No order granting the Bujaks discharge has been entered in this case. 6. In or around September 2011, the United States Trustee and Chapter 7 Trustee were first informed that the Bujaks failed to disclose their ownership of a valuable Rolex watch (the Rolex ) In September 2011, the Office of the United States Trustee obtained information corroborating the Bujaks ownership of the Rolex at the time they filed bankruptcy and their sale of the Rolex while the bankruptcy case was pending. After an inquiry into the underlying facts, it was determined the United States Trustee should file a complaint seeking denial or revocation of the Bujaks discharge under 11 U.S.C. 727(a)(2), (4) and (d)(1), containing the following allegations: A. The Bujaks knowingly and fraudulently made material false oaths in their bankruptcy schedule B by omitting the Rolex. 1 The United States Trustee is informed the Bujaks owned an additional Rolex watch worth around $1,

3 Document Page 3 of 5 B. The Bujaks knowingly and fraudulently made false oaths by testifying at their meeting of creditors on December 8, 2010, that to the best of their knowledge everything in their bankruptcy schedules was true and correct, with the exception of certain corrections which they identified in their testimony. Those corrections did not include the Rolex watch. The Bujaks testimony was false because the Rolex was not listed in their schedules. C. The Bujaks, with the intent to hinder, delay or defraud an officer of their bankruptcy estate charged with custody of property under the Bankruptcy Code, concealed the Rolex while their bankruptcy case was pending and sold it, or permitted it to be sold, in or around June 2011, for approximately $25, As part of the United States Trustee s inquiry, John Thomas Bujak was contacted and Pepper Rae Bujak was contacted through her counsel. The Bujaks were advised of the United States Trustee s intention to file a complaint seeking denial or revocation of their discharge. The Bujaks were informed that if they did not waive their discharge, the United States Trustee would file the complaint. Mr. Bujak provided the United States Trustee with a signed waiver of his discharge. Mr. Bujak modified the language in the waiver of discharge by inserting a provision requiring the Chapter 7 Trustee to continue to prosecute an adversary proceeding against Canyon County. A conditional waiver of discharge was unacceptable. The United States Trustee advised Mr. Bujak of such. Mr. Bujak signed an unconditional waiver of discharge and delivered it to the Office of the United States Trustee. That waiver of discharge was filed with the Court. Mrs. Bujak has not provided a waiver of discharge to the United States Trustee U.S.C. 727(a)(10) permits a debtor to waive his bankruptcy discharge. If the -3-

4 Document Page 4 of 5 Court enters an order approving Mr. Bujak s waiver of discharge, the United States Trustee will not file a complaint seeking denial or revocation of Mr. Bujak s discharge because the waiver of discharge would essentially render the complaint moot. Dated: September 28, 2011 ROBERT D. MILLER JR. United States Trustee /s/ David W. Newman David W. Newman Assistant United States Trustee and Attorney for the United States Trustee [Non CM/ECF david.w.newman@usdoj.gov] -4-

5 Document Page 5 of 5 CERTIFICATE OF SERVICE I HEREBY CERTIFY that on September 28, 2011, I filed the foregoing with the Court s CM/ECF system which causes a copy of the foregoing to be served by electronic means on the parties reflected on the Notice of Electronic Filing. AND I FURTHER CERTIFY that on such date I caused to be served said notice on the following non-cm/ecf Registered Participants via first class mail to the attached Mailing Matrix, except for the Court, the U.S. Trustee and his counsel. Debtor(s) John Thomas Bujak 111 East Pat Lane Caldwell, ID John Bujak W. Overland, Ste 348 Boise ID Pepper Rae Bujak 111 East Pat Lane Caldwell, ID Dated: September 28, 2011 /s/ David W. Newman DAVID W. NEWMAN -5-