Case Summary:
The trustee brought this adversary proceeding asking the court to find (1) that the debtor's right to recover damages in a wrongful death action were property of the estate under 11 U.S.C. § 541(a); (2) that the debtor is required to turnover the settlement proceeds and the property he purchased with the proceeds under 11 U.S.C. § 542(a); and (3) that the debtor's discharge should be revoked pursuant to 11 U.S.C. § 727(d)(2).  The court (Judge Martin) ruled that under Illinois law, the debtor had an interest in the wrongful death action brought for the death of his mother.  This interest became property of the estate upon the filing of the debtor's bankruptcy.  Because the debtor never scheduled this interest, it remained property of the estate even after the debtor's bankruptcy case was closed.  The court further entered a judgment against the debtor for the amount of the wrongful death proceeds received by the debtor but not turned over to the bankruptcy estate.  Finally, the court revoked the debtor's discharge pursuant to § 727(d)(2) because it was more probable than not that the debtor possessed fraudulent intent while failing to report and deliver the settlement proceeds to the trustee.

Statute/Rule References:
11 U.S.C. § 541 -- Property of the Estate
11 U.S.C. § 542 -- Turnover of Property
11 U.S.C. § 727 -- Discharge

Key Terms:
Discharge
Property of the Estate
Turnover of Property