MATTER OF REED

No. 81-1556.

700 F.2d 986 (1983)

In the Matter of Hugh D. REED, et al., Debtors. FIRST TEXAS SAVINGS ASSOCIATION, INC., Adversary No. 580-0018, Texas Bank & Trust Co. and Small Business Administration, Adversary No. 580-0019, and Jack P. Driskill, Trustee, Adversary No. 580-0025, Plaintiffs-Appellees Cross-Appellants, v. Hugh D. REED, et al., Defendants, Hugh D. Reed, Defendant-Appellant Cross-Appellee.

United States Court of Appeals, Fifth Circuit.

March 21, 1983.


Attorney(s) appearing for the Case

Robert N. Benson, Philip I. Palmer, Jr., Dallas, Tex., for defendant-appellant cross-appellee.

George H. McCleskey, Lubbock, Tex., for First Texas Sav. Ass'n.

R. Byrn Bass, Jr., Lubbock, Tex., for Texas Bank and Trust Co.

Barbara Hoffman, Lubbock, Tex., for Small Business Admin.

Jack P. Driskill, Lubbock, Tex., for Trustee.

Before RUBIN, RANDALL and JOLLY, Circuit Judges.


ALVIN B. RUBIN, Circuit Judge:

We hold that a debtor who converts nonexempt assets to an exempt homestead immediately before bankruptcy, with intent to defraud his creditors, must be denied a discharge in bankruptcy because of the provisions of Section 727 of the Bankruptcy Code, 11 U.S.C.A. § 727 (West 1979), and, therefore, we affirm the decision of the district court.

I.

Hugh D. Reed, as sole proprietor, opened a shop using the trade name...

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