Attorney Cynthia LawsonTodd Chrisley, the star of Chrisley Knows Best filed  a chapter 7 bankruptcy in August 2012.  The Chapter 7 Trustee who administered Chrisley’s bankruptcy estate filed an adversary proceeding in February 2014 asserting Chrisley had not disclosed all of his assets and transferred assets to his wife prior to the filing of the bankruptcy. [i] The Trustee sought to avoid those transfers as a fraudulent transfer.  Subsequently, the Trustee and Chrisley entered a settlement agreement whereby Chrisley was to pay the bankruptcy estate $150,000.  This settlement was approved by the Bankruptcy Court in March 2015.

Motion for Contempt

In January 2017 the Chapter 7 Trustee filed a motion for contempt asking the Bankruptcy Court in Georgia to hold Chrisley in contempt of court for Chrisley’s refusal to comply with a settlement agreement he entered into with the Trustee as Chrisley had only paid the bankruptcy estate $80,000 of the $150,000 owed.    Despite Chrisley’s promise to pay the Trustee the remaining $70,000 by November 2016, he did not do so.  A hearing on the motion to compel and contempt was initially scheduled for February 16, 2017.

The Chapter 7 Trustee withdrew the motion to compel and for contempt after Chrisley apparently complied by paying the bankruptcy estate the rest of the funds owed to the estate. Contempt of court is being disobedient or disrespectful towards a court of law in the form of begin rude or disrespectful to legal authorities of the courtroom, particularly the Judge.  A motion for contempt can be filed to enforce an order of the Court.   If the Court finds that the party’s action or non-action constitutes contempt, then the Court or Judge can impose sanctions in the form of requiring compliance, being fined monetarily or even be held in jail until the party to the litigation complies.  Being held in contempt is one of the most powerful sanctions a court can impose.

 

See more detailed blogs regarding fraud allegations against Chrisley while in his bankruptcy at:

 

[i] Information obtained from PACER, Doc 446 Motion to Compel Enforcement of Settlement Agreement and to Find Debtor in Civil Contempt of Court

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