The debtor did not disclose her interest as a result of her mother’s passing away in either the personal property or the residual estate on her bankruptcy petition nor at the § 341 meeting.  The debtor was entitled to a one-third interest in proceeds from the sale of her mother’s house, but at the real estate closing the debtor disclaimed her interest in the proceeds in favor of one of her brothers.  As a result, the United States trustee filed a motion to deny the debtor’s discharge pursuant to 11 U.S.C. § 727(a)(2) as well as § 727(a)(4)(A).

            The Court found that the trustee failed to prove, beyond a preponderance of the evidence, all elements required for a denial of the debtor’s discharge under either 11 U.S.C. §727(a)(2) or 11 U.S.C. §727(a)(4)(A).  Specifically, the trustee failed to demonstrate that the debtor acted with the intent to delay, hinder or defraud creditors when she failed to disclose her interest in property bequeathed to her by her mother or when she disavowed her interest in said property to her brother.