What is the test for a discharge under section 727 of the Bankruptcy Code?

MultiRegion, United States of America

The following excerpt is from Summers, In re, 19 F.3d 29 (9th Cir. 1994):

Under section 727 of the Bankruptcy Code, Summers was entitled to a discharge from all his debts unless he, "with intent to hinder, delay, or defraud a creditor[,] ... transferred, removed, destroyed, mutilated, or concealed" property belonging to him "within one year before the date of the filing of the bankruptcy petition." 11 U.S.C. Sec. 727(a)(2)(A). "Section 727's denial of discharge is construed liberally in favor of the debtor and strictly against those objecting to discharge. Accordingly, discharge of debts may be denied under section 727(a)(2)(A) only upon a finding of actual intent to hinder, delay, or defraud creditors." First Beverly Bank v. Adeeb (In re Adeeb), 787 F.2d 1339, 1342-43 (9th Cir.1986) (citation omitted).

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