United States Bankruptcy Appellate Panel of the Eighth Circuit
In re: Dennis Michael Thiel, Jr. Debtor
Dennis Michael Thiel, Jr. Defendant-Appellant David G. Velde, Chapter 7 Trustee Plaintiff- Appellee
Submitted: June 19, 2018
from United States Bankruptcy Court for the District of
Minnesota - Fergus Falls
SCHERMER, NAIL, and DOW, Bankruptcy Judges.
Michael Thiel, Jr. ("Debtor") appeals the January
23, 2018 judgment of the bankruptcy court revoking
Debtor's discharge. We have jurisdiction over this appeal
pursuant to 28 U.S.C. § 158(b). We affirm.
filed a petition for relief under chapter 7 of the bankruptcy
code on February 13, 2015. David G. Velde
("Trustee") was appointed trustee.
schedule of personal property he filed with his petition,
Debtor indicated he had no "[o]ther liquidated debts
owed to debtor[, ] including tax refunds" and
no "[o]ther contingent and unliquidated claims of every
nature, including tax refunds[.]" (Emphasis
added.) Four days later, Debtor filed his 2014 federal and
state income tax returns with the appropriate taxing
April 10, 2015, Debtor signed an amended schedule of personal
property, on which he listed a 2014 income tax refund of $7,
236.00,  and an amended schedule of property
claimed as exempt. Debtor did not immediately file either
week later, Debtor attended the meeting of creditors, at
which Trustee asked him, inter alia, whether he was
aware of any mistakes or errors in his schedules. Debtor said
he would file an amended schedule of personal property to
correct the amount of a social security disability claim that
he had previously disclosed and to disclose a wage claim.
Debtor also said he would file an amended schedule of
property claimed as exempt to claim a portion of the wage
claim exempt. Debtor did not mention the income tax refunds.
Four days later, Debtor filed the amended schedule of
personal property that included the income tax refunds and
the amended schedule of property claimed as exempt.
received his discharge in due course. Following an
unsuccessful attempt to have the bankruptcy court order
Debtor to turn over the income tax refunds,  Trustee commenced
an adversary proceeding under 11 U.S.C. § 727(d)(2) to
revoke Debtor's discharge.
matter was tried. In its memorandum decision, the bankruptcy
court found Debtor knowingly and fraudulently failed to
surrender the income tax refunds to Trustee and directed the
entry of a judgment revoking Debtor's discharge. Judgment
was entered, and Debtor timely appealed.
review the bankruptcy court's finding that Debtor
knowingly and fraudulently failed to surrender the income tax
refunds to Trustee for clear error. See Islamov v.