The following excerpt is from Hazelrigg v. U.S. Tr. (In re Hazelrigg), Adv. No. 12-01966-TWD, BAP No. WW-13-1230-TaDJu, Bk. No. 11-22731-TWD (B.A.P. 9th Cir. 2013):
In general, the bankruptcy court must grant a discharge to an individual chapter 7 debtor unless one of the twelve enumerated grounds in 727(a) is satisfied. In the spirit of the "fresh start" principles that the Bankruptcy Code embodies, claims for denial of discharge are liberally construed in favor of the debtor and against the objector to discharge. Khalil v. Developers Sur. & Indem. Co. (In re Khalil), 379 B.R. 163, 172 (9th Cir. BAP 2007), aff'd, 578 F.3d 1167 (9th Cir. 2009). The objector to discharge, thus, bears the burden to prove by a preponderance of the evidence that the debtor's discharge should be denied under an enumerated ground of 727(a). Id.
One basis for denial of discharge exists where the chapter 7 debtor fails "to explain satisfactorily, before determination of
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denial of discharge . . . any loss of assets or deficiency of assets to meet the debtor's liabilities." 11 U.S.C. 727(a)(5). To establish a prima facie case under 727(a)(5), the objector to discharge must demonstrate that:
Retz v. Sampson (In re Retz), 606 F.3d 1189, 1205 (9th Cir. 2010).
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