Bankruptcy Didn't Stop Barber From Living the Good Life

by Mark Friedman  on Monday, Dec. 6, 2010 12:00 am  

In June 2009, Barber tried to rent an apartment in New York. He claimed on his application that he made $400,000 annually. Less than two months later, though, on July 31, 2009, Barber filed for Chapter 7 bankruptcy protection; he listed income of about $28,000 a year.

At the hearing, Barber defended the $400,000 statement by saying that he was capable of earning that amount. Still, he said what he reported under oath to the bankruptcy court was correct.

"Do you have to be under oath to tell the truth?" Ney asked.

"Not at all," Barber said. "But there was six months [left in the year] and I think my past years had shown I was capable of making that kind of income."

But Ney said all the "loans" Barber received from his friends totaled about $485,000 in 2009.

"So he was in the range of what he claimed to the New York landlord," Ney told Judge Barry.

In the 26 days after Barber filed for bankruptcy, $176,672 was transferred into the Nware account  and $178,987 was transferred out, Barry's order said.

"The Court finds that Barber used Nware and the Nware Account to transfer and conceal cash belonging to Barber and in an effort to place the cash beyond the reach of his creditors," Barry said in his order.

"The Court denies Barber his discharge," he said.



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