Quote of the Day - I always turn to the sports pages first, which records people's accomplishments. The front page has nothing but man's failures.
MIPTC occasionally finds itself in bankruptcy court, and I must say, this decision will give many consumers and business much to think about before going there. Let me cover the facts.
Marc Caneva owns several businesses, mobile home parks and even an airplane. In too much debt, he chose to file for Chapter 7 dissolution and discharge. While in BK court, he amended his bankruptcy schedules. Essentially, each one was less and less clear.
Finally, his last amendment said his interest in the businesses was unknown. In a courtroom examination of the status of his finances, Caneva admitted that he failed to keep records for his businesses.
To be painfully obvious, you must keep business financial records in order to obtain a discharge in bankruptcy. One of Caneva's creditors objected to the Court's ability to discharge his debts due to his lack of financial records. The Court denied Caneva's request for a discharge based on his lack of records, ruling that the court couldn't tell what to discharge, and he appealed.
The Bankruptcy Code allows discharges, but not if the debtor fails to preserve records "from which the debtor's financial condition or business transactions might be ascertained." Sufficient written evidence, as opposed to absolute completeness, must be presented.
Caneva argued he produced a substantial quantity of documents, but he admitted he did not keep records crucial to determine the extent of Caneva's interest in his businesses. Since his creditors were not able to accurately understand Caneva's financial condition, the court did not have to discharge his debts.
Spin up that computer, and open up an accounting program.