Des Moines developer John Kline’s federal bankruptcy case should be dismissed because he failed to provide an inventory of debts and assets by asserting his constitutional right against self-incrimination, according to a motion filed today in U.S. Bankruptcy Court in Des Moines.

Kline filed what is called a short-form petition Feb. 17 seeking a liquidation of assets and discharge of debts. In the filing, Kline listed assets of between $1 million and $10 million and debts of $1 million to $10 million.

Bankruptcy law provides 15 days from the date of filing to give detailed information. However, Kline’s attorney, Jerrold Wanek, was given until March 16 to provide such information.

Kline cited his constitutional right against self-incrimination in the latter filing and refused to provide a detailed account of his finances, including his income tax returns, according to the motion to dismiss the case filed by the trial attorney for U.S. Trustee Habbo Fokkena.

If the motion is granted, Kline would lose protection from creditors. Kline’s filing under Chapter 7 of the U.S. Bankruptcy Code protects him from collection activities, including most civil court judgments. Debts often are discharged at a rate of pennies on the dollar.

One exception to the discharge of debts can be civil fraud rulings. On Jan. 19, a Dallas County judge determined that Kline committed civil fraud by using loan proceeds from First National Bank Midwest intended for his Hickory Hills development near 81st Street and E.P. True Parkway in West Des Moines for a variety of purposes, including political contributions. The judge ordered Kline to pay nearly $6.5 million in actual and punitive damages in the case.

The Hickory Hills development will be auctioned at a sheriff’s sale on March 24 because of the court judgment in First National Bank Midwest’s favor.

In loan documents submitted in May 2006 to First National Bank Midwest, Kline claimed a net worth of $17 million. The Dallas County judge took note of that financial statement in ordering Kline to pay punitive damages in the fraud ruling.

Shortly after the ruling, Kline’s million-dollar home in Urbandale burned to the ground in a fire that remains under investigation. After the fire, Kline filed for bankruptcy.

At the time of the bankruptcy filing, Wanek said that the civil fraud case from state court might not stand in federal bankruptcy court because Kline did not defend himself.

In the motion filed today, attorney Robert Gainer, representing the bankruptcy trustee, said, “debtor has not presented any credible reason as to why responding to the questions would pose a real threat of incrimination, nor has debtor communicated any attempt by himself to obtain immunity.”

Gainer notes that in addition to a complete statement of assets and liabilities, Kline is required by law to turn over state and federal tax returns, but that he refused to do so, again asserting his constitutional protections from self-incrimination.

Wanek was out of the country and not available for comment for this story.