In Re: Bruce E. Thunberg v. Marc D. Wallick

Bruce Thunberg filed a Chapter 7 bankruptcy petition in August 2000, 11 U.S.C. __ 701-784 (2006), and Marc Wallick was appointed trustee. An order by the bankruptcy court discharging Thunberg issued in December 2000, but in April 2002, the trustee sought to revoke the discharge on the ground that it had been procured by Thunberg’s fraud. Id. _ 727(d)(2). In August 2009, the bankruptcy court revoked the discharge, and the district court affirmed.*fn1 Thunberg now appeals from the revocation.

At issue is Thunberg’s interest derived from a 1997 settlement agreement with his ex-wife incident to their divorce. The settlement agreement specified that, each December for the next 15 years, his former wife would pay Thunberg $30,000–$16,666.66 being designated in the agreement as alimony and $13,333.33 being designated as a property settlement payment. Thunberg’s bankruptcy petition listed the $160,000 over the remaining 12 years as a property settlement, asserting that it was subject to two liens, and listed the $1,333 per month in alimony as income.