Texas Couple's Bankruptcy Petition Backfires for failure to disclose Assets in Pakistan and Dubai

Dr. Hasan Farid Hashmi, a Physician and, Umme Salma Hashmi of Texas, failed to disclose assets in Pakistan and Dubai in their bankruptcy petition after the closure of several Texas hospitals owned by them, remain personally liable for their debts, and creditors are free to pursue payment from them after the case is closed.

A Texas couple who failed to disclose assets in Dubai and Pakistan waived their bankruptcy discharge of more than $14.6 million in unsecured debt after an investigation by the Department of Justice’s U.S. Trustee Program (USTP).
On May 30, the Bankruptcy Court for the Northern District of Texas approved a waiver of discharge by chapter 7 debtors Hasan Farid Hashmi and Umme Salma Hashmi. As a result, the Hashmis remain personally liable for their debts, and creditors are free to pursue payment from them after the case is closed.

“The bankruptcy system depends on transparency,” said Lisa Lambert, U.S. Trustee for Region 6, which includes the Northern District of Texas. “Debtors who intentionally undermine that system should not receive the benefit of a fresh start.”

The Hashmis filed for bankruptcy in September 2023 after the closure of several Texas hospitals owned by Hasan Hashmi, a physician. Among their assets, the couple listed a $2 million Dallas home as their only real estate and two American bank accounts with small balances. They also disclosed that they had established a trust for their descendants — which Dr. Hashmi managed as trustee — but claimed no interest in the trust’s assets as owners or beneficiaries. An investigation by the USTP’s Dallas office, however, revealed that the Hashmis owned several other properties and bank accounts in Dubai and Pakistan and that they used funds from the trust to pay personal expenses.

In February 2024, the USTP filed a complaint seeking to bar the Hashmis’ bankruptcy discharge for making false oaths; concealing assets; failing to maintain financial records; failing to cooperate with the chapter 7 trustee’s document requests; and refusing to obey a court order requiring the Hashmis to comply with the U.S. Trustee’s document requests. One day before trial, the Hashmis agreed to waive their discharge.