Larry Gregory, et al v. Ricky Leonard Beard

FILED
U.S. COURT OF APPEALS
ELEVENTH CIRCUIT
MAY 4, 2012
JOHN LEY
CLERK
[DO NOT PUBLISH]
IN THE UNITED STATES COURT OF APPEALS
FOR THE ELEVENTH CIRCUIT
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No. 11-14879
Non-Argument Calendar
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D.C. Docket No. 6:11-cv-00722-GAP,
BKCY No. 6:08-bk-11343-6B7
In Re: RICKY LEONARD BEARD,
Debtor,
__________________________________________________
LARRY GREGORY,
RITA GREGORY,
Plaintiffs-Appellants,
versus
RICKY LEONARD BEARD,
Defendant-Appellee.
__________________________
Appeal from the United States District Court
for the Middle District of Florida
_________________________
(May 4, 2012)
Before MARCUS, MARTIN and HILL, Circuit Judges.

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PER CURIAM:
`
This is an appeal from an order of the district court affirming the bankruptcy
court in this Chapter 7 case, finding that appellee-debtor, Ricky Leonard Beard
(Beard), was entitled to a discharge and that his debt owed to appellants-unsecured
creditors, Larry Gregory and Rita Gregory (the Gregorys), in the amount of
$600,000, was also dischargeable.
In 2004, the Gregorys sold their lawn care business to Sunbum5 Enterprises,
LLC (Sunbum). Beard was the principal owner of Sunbum. The asset purchase
agreement required Sunbum to pay the Gregorys $50,000, at closing, and $50,000,
within thirty days of closing. The $700,000 balance was the personal debt of the
Gregorys, payable in weekly installments of $1035.80.
Sunbum paid the initial $100,000 requirement, and made 144 weekly
installments of $1035.80, from 2004 through July 2008. Then the lawn care
business went the way of the economy, and Beard filed for bankruptcy protection
in November 2008.1
Sunbum filed a voluntary dissolution with the Florida Department of State in December1
2008.
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The Gregorys raised three issues on appeal to the district court: (1) whether
the bankruptcy court clearly erred in finding Beard to be credible; (2) whether the
bankruptcy clearly erred in failing to deny Beard a discharge for failing to
preserve books and records; and, (3) whether the bankruptcy court clearly erred in
its determination that the Gregorys had failed to prove that their debt was exempt
from discharge under 11 U.S.C. § 523(a)(2)(B).
The district court found that none of these three issues had merit. It
determined: (1) that the bankruptcy court did not abuse its discretion in
determining, operating as a trial court, that Beard was credible; (2) that he had not
committed false oaths regarding missing books and records, and that he had
produced all available records; and, (3) that the bankruptcy court had not abused
its discretion in determining that the Gregorys had failed to show that their debt
should be exempt from discharge under 11 U.S.C. § 523(a)(2)(B). We agree.
We have reviewed the record in this appeal, the briefs, and the arguments of
counsel. Finding no error, the judgment of the district court is
AFFIRMED.
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