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[Solution]Filing Bankruptcy While Receiving Compensation

by | Jul 18, 2022 | Recent Orders

Dr. Arthur Ritus obtained his degree in chiropractic medicine by taking out $100,000 in Health Education Assistance Loans from the U.S. Department of Health and Human Services during the period from 1995 through 1997 and from other government sources from 1998 to 2002. Loan repayment was not scheduled to start until 2005. In 2005, Dr. Ritus became one of the ordained ministers of the Millcreek Life Academy (MLA) in Millcreek, Utah. As a minister, Ritus was required to take a vow of poverty, which required him to renounce any interest in real or personal property and any income and grant all interests in those assets to MLA. In 2005, Dr. Ritus accepted a position as a full-time employee to perform medical services to inmates at the Department of Corrections in Salt Lake City, Utah. Instead of using his own social security number, Ritus provided the Department of Corrections with a number issued by MLA. Checks were deposited to one of the MLA bank accounts and then MLA transferred approximately $12,000 a month to another account set up by Dr. Ritus. In August 2010, Dr. Ritus filed a voluntary bankruptcy petition under Chapter 7 to obtain a discharge of his debts. Dr. Ritus made the following claims to his attorney.


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