Creditors in the bankruptcy process claimed that the debtors hide information about their income and live a rich and extravagant lifestyle despite the bankruptcy proceedings and therefore contended that the bankruptcy proceedings of the debtors should be canceled.
The Court held that bankruptcy proceedings may be canceled if the debtor abuses the proceedings, including in the event that the debtor fails to fulfill his obligations to provide reliable and complete information to the bankruptcy trustee regarding his sources of income and his property or when the debtor acts during the bankruptcy proceedings with concealing information or against orders given against the debtor. In this case, contentions were raised on hidden income and non-reporting on debtors’ assets, but these claims of the creditors were not based on clear and unequivocal evidence and therefore the Court ordered the trustee in bankruptcy to submit a report on the subject before it decides whether to continue the proceedings or not.