Citizens Fidelity Bank & Trust Co. v. Schermer (In Re Schermer)

MEMORANDUM OPINION

MERRITT S. DEITZ, Jr., Bankruptcy Judge.

A complaint under Section 727 of the Bankruptcy Code, the most serious noncriminal action a creditor can bring against a debtor in bankruptcy, is before the court. Here we examine the final months of a debtor’s failing business, not only to determine whether the debtor is entitled to a discharge, but also to decide whether the trustee is entitled to claim certain assets as property of the debtor’s bankruptcy estate'.

The debtor, Barry Schermer, and the plaintiff in this proceeding, Citizens Fidelity Bank & Trust Company (Citizens) had a…