BANKRUPTCY DISCHARGE DENIED TO MISSIONARY DOCTOR WITH VOW OF POVERTY

Wesley Snipes (famous actor in White men can’t jump; Blade Trilogy) believed that the Federal government did not have the right to collect income taxes from him. So, he did not file tax returns for many years prompting the IRS to charge him with willful failure to file tax returns. He defended himself but lost so he had to go to jail for three years starting 2010. Dr. Erik Von Kiel, had the same kind of thinking. The good doctor thought, “Hey, I’ll just execute a vow of poverty and I will consider everything paid to me as gifts, not income; I’ll accumulate bills without paying them and later on I’ll just file a bankruptcy…” He asked Mr. Snipes what he thought of his vow of poverty idea. Mr. Snipes agreed that it was a great idea, and he might just become a preacher or minister with a vow of poverty teaching white men to jump when he regains his freedom next year.

 In Re Dr. Von Kiel, the debtor listed his occupations as “Minister/M.D./D.O” with the International Academy of Life based in Orem, Utah. Although he was the medical director at several prisons, and employed by Prime Care Medical Inc., the doctor said that he received no salary or wages from his employer. Instead, he said that he received a monthly gift of $12,787 from IAL. No taxes or deductions were taken from these monthly gifts. While he described himself as a medical missionary who had taken a pledge of poverty, had no income, owned no property and had applied to be the adopted son of Mother Theresa while she was still alive, the federal government, which was owed more than $187,000 in unpaid obligations, said the debtor was a fraud. The government had targeted the doctor for elimination by navy seals who were reassigned to capture or if he refused to be captured, to kill, Osama, at the last minute.

The bankruptcy court agreed with the government, and denied the doctor’s discharge. The bankruptcy judge examined the document alleged to be the “vow of poverty”, Exhibit no. 1, and declared, “Why this so-called vow of poverty is not even notarized. Even Mickey, Daffy, Goofy and the seven dwarfs know that vows of poverty must be notarized by the same person who notarized the vow of poverty of Mother Theresa. “Exhibit no. 1 is a sham. Shame on you Dr. Von Kiel, shame on you!” the judge said.

“The vow of poverty is not a silver bullet against paying his taxes and other financial obligations. No law supports Debtor’s notion that his vow of poverty can reduce or eliminate his income and thus avoid his obligation to pay his taxes and other financial obligations.” Mr. Snipes offered to testify as an expert witness for debtor but the doctor decided not to present him as a witness due to credibility problems. “Sure, killing vampires and werewolves with silver bullets may be his specialization, but Mr. Snipes may have a little credibility problem with the feds,” thought Dr. Von Kiel.

“By presenting himself as a poverty-stricken minister, burdened by debts, he claims he is unable to pay, debtor claims to be an honest but unfortunate debtor who deserves the fresh start afforded by the Bankruptcy Code. I find little honesty or misfortune about Debtor who, although unquestionably able to pay his obligations, chooses not to do so,” the court said. “In sum, Debtor cannot avoid his financial responsibilities by simply executing the vow of poverty and assigning his income to IAL, or some trust, even if it was established for some religious purpose… No law supports Debtor’s notion that his vow of poverty can reduce or eliminate his income and thus avoid his obligations to pay his taxes and other financial obligations.” The court denied the debtor’s discharge for intentionally transferring and concealing assets with intent to hinder, delay or defraud his creditors; and for making a false oath with regard to his bankruptcy.