Sat Aug 02 09:30:00 UTC 2025: Okay, here’s a summary of the article, followed by a news article rewrite:

**Summary:**

A federal judge dismissed the bankruptcy case of personal injury attorney Jeffrey M. Brody because he failed to disclose over $400,000 in referral fees he received. Brody filed for Chapter 13 bankruptcy in 2021, prompted by a legal malpractice lawsuit. He concealed the referral income, leading to a bankruptcy plan that would have paid creditors a mere 0.3% of their losses. The bankruptcy trustee discovered the hidden income and requested the case be dismissed. Judge Paek agreed, finding Brody acted in bad faith and his lack of candor was grounds for dismissal, noting that creditors were kept in the dark and were deprived of the chance to a greater payout. A hearing is scheduled for August 12 to discuss the disposition of the case.

**News Article:**

**Judge Throws Out Attorney’s Bankruptcy Case After Undisclosed Income Surfaces**

**KINGSTON, NY** – A federal bankruptcy judge has dismissed the Chapter 13 bankruptcy case of personal injury attorney Jeffrey M. Brody after finding he concealed over $400,000 in income. U.S. Bankruptcy Judge Kyu Y. Paek ruled that Brody, who ran his own law firm in Kingston until 2017 before joining Finkelstein & Partners, acted in bad faith by failing to disclose referral fees he received.

Brody filed for bankruptcy protection in 2021, citing a legal malpractice lawsuit filed against him by Krystal Shultis, who sought $500,000 for alleged mishandling of a medical malpractice case. As part of his transition to Finkelstein & Partners, Brody transferred pending lawsuits to the firm and received referral fees as the cases settled. Between 2019 and 2024, Brody was paid $426,757 in referral fees, but failed to report any of this income to the bankruptcy court.

The failure to disclose the income resulted in a proposed repayment plan that would have allowed unsecured creditors to recover only 0.3% of their losses. After the plan was confirmed in April of 2022, trustee Thomas C. Frost discovered the discrepancy and asked the court to dismiss Brody’s case.

“The debtor is not an ‘honest debtor’ deserving of the substantial benefits afforded by a bankruptcy discharge,” Judge Paek stated in his July 28 decision. He noted that Brody’s creditors were not given the opportunity to seek a greater payout. “The debtor’s lack of candor regarding the referral fees was in bad faith, and constitutes cause for dismissal.”

A hearing is scheduled for August 12 to determine the next steps in the case.

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