Thursday, August 11, 2016

RFRA Does Not Impact Bankruptcy Code's Denial of Discharge

The Bankruptcy Code, Sec. 727(a)(2)(A) provides that a bankruptcy court should deny a discharge if the debtor has within one year of filing for bankruptcy transferred property with the intent to hinder, defraud or delay a creditor.  In In re Crabtree, 2016 Bankr. LEXIS 2922 (MN Bkr., Aug. 8, 2016), a Minnesota federal bankruptcy judge held that the Religious Freedom Restoration Act does not prevent applying this provision to a family's donation of a box of 500 silver coins, valued at $12,000.00, to their church, Firestarters Worship Center.