MckMama Bankruptcy Case Update

There is little news to report in the bankruptcy case of Jennifer Sauls McKinney and Israel McKinney. In May, bankruptcy trustee Gene Doeling filed Case 12-06024, objecting to the discharge of the McKinney’s bankruptcy and alleging that the McKinneys made false and misleading disclosures in their bankruptcy filing.

The summons in the case gave the McKinneys 30 days to file an answer. According to Pacer, the site on which documents in federal cases are made available to the public, no response has been filed. Why not? It’s hard to say, but the logical conclusion might be that MckMama and MckDaddy have no real defenses to the allegations made by Mr. Doeling.

A scheduling order was posted on Pacer last week, and it sets forth the following dates:

  • Discovery closes on September 7, 2012. This means that both sides must exchange the information they have by then, so everyone knows what evidence exists in the case.
  • Motions other than those attempting to end the case (for example, a motion to compel, which asks the judge to force the other side to turn over evidence) must be filed by September 7, 2012.
  • Dispositive motions (those attempting to end the case, such as a motion to dismiss) must be filed by October 9, 2012.
  • After October 9, 2012 both sides must be ready to go to trial, which will be no longer than 1/2 day.

The case against the McKinneys can be settled without a trial.  I have no idea what kind of settlement could be made. I believe that Jennifer’s debts will NOT be discharged.  The McKinneys will likely try to negotiate which assets the bankruptcy court seizes and sells.

I can’t imagine that the McKinneys would want a trial, which would be another public airing of their dirty laundry. On the other hand, Jennifer McKinney has no shame. She repeatedly lied about paying off their debts, so it is unlikely that she would have the good sense to be embarrassed about her fraud on the bankruptcy court being further exposed.

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