Case Summary:
Debtors filed prior case in June 2024. They both received a discharge. But after their discharge, the Chapter 7 trustee moved to compel production of certain documents. The Court held a hearing on the motion to compel in November, at which Mrs. Sloniker stated that she wouldn’t produce certain trust documents, even if ordered to do so by the Court. The Court ordered the Debtors to produce the documents, which they ultimately failed to do. The U.S. Trustee filed an adversary proceeding seeking revocation of Mrs. Sloniker’s discharge for failing to comply with the Court’s order. The Court ruled in favor of the U.S. Trustee and revoked Mrs. Sloniker’s discharge. Mr. Justo’s discharge remained intact. Later, the Chapter 7 trustee moved to dismiss the prior case for failure to comply with the Court-ordered motion to compel. The Court granted the motion and dismissed that case in March 2025. The Debtors then filed this case a week later. The U.S. Trustee moved to dismiss, arguing that the Debtors were ineligible to be debtors under section 109(g) for having a prior case dismissed within the past 180 days for failure to comply with a Court order. The Court held a hearing on the motion at which counsel for the U.S. Trustee and the Debtors each appeared in person. The Court granted the U.S. Trustee’s motion and dismissed the case as to Mrs. Sloniker under section 109(g). The case wasn’t dismissed as to Mr. Justo, but the Court noted that he was ineligible for a discharge under section 727(a)(8) and provided him time to decide whether he wants to remain in the case.
Statute/Rule References:
11 U.S.C. § 109(g) -- Who may be a debtor
11 U.S.C. § 727(a)(8) -- Nondischargeability – previous discharge
Key Terms:
Discharge
Eligibility