Will a Discharge Be Revoked If Debtor Accepts Undisclosed EEOC Award?

Yes.

A Bankruptcy judge in CD of Illinois revoked the Chapter 7 debtor’s discharge pursuant to 11 U.S.C.S. § 727(d)(2) because the debtor knowingly and fraudulently took possession of proceeds from a $150,000 EEOC award, failed both to notify the Trustee that the funds had arrived and to turn the funds over to the Trustee as required, and spent over $135,000 of the funds.

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