THOMAS P. AGRESTI, Chief Judge.
For several months this case has been in a state of procedural confusion attributable to the Debtors' Counsel's failure to follow basic rules of procedure and the orders of the Court. The Court must therefore act to "clean up" the resulting mess as best it can. A recitation of the relevant procedural history of the case is necessary to provide the appropriate context for this Order.
The Debtors' case was originally filed on October 9, 2005, as a voluntary Chapter 7 proceeding. The case proceeded normally, a discharge order was entered on May 3, 2006, and the case was closed that same date. On July 4, 2008, the Debtors filed a motion seeking to reopen the case, stating that they had inadvertently excluded two mortgages on their original Schedule D and wished to reopen the case so they could add them and convert the case to Chapter 13. The case was reopened and converted to Chapter 13 by an Order dated July 17, 2008. Thereafter, the Debtor obtained interim and then final confirmation of a Plan and made payments to the Chapter 13 Trustee.
Up to this point the matter had proceeded in a fairly straightforward manner. The present state of confusion can be traced back to April 14, 2011, when the Trustee filed a
On June 8, 2011, a hearing was held on the Trustee's Motion to Dismiss Case. At the hearing the Court noted that the Debtors
On June 23, 2011, the Debtors filed a Response to Rule to Show Cause/Motion to Waive the Original Chapter 7 Discharge and Subsequently Discharge the Case, Doc. No. 174. In this document the Debtors acknowledge that the prior Chapter 7 discharge was still in place but stated that they could now effect a "waiver" of such discharge pursuant to 11 U.S.C. § 727(a)(10), and asked the Court to approve same so the case could be reconverted to Chapter 7.
At the Rule to Show Cause hearing, Debtors' Counsel stated that he had "really screwed this one up" and reiterated the argument that the problem could be solved because the Debtors had a right to waive the prior discharge under Section 727(a)(10). Counsel stated that if the prior discharge were waived, the case could then be converted back to Chapter 7 and a new discharge entered. The Court expressed some doubt as to whether the Debtors had a right to waive the prior discharge, but said it would allow the Debtors time to file a motion to that effect. On July 1, 2011, the Court issued an Order vacating the Rule to Show Cause and giving the Debtors until July 20, 2011, to file a motion seeking to waive the discharge.
On July 20, 2011, the Debtors filed a Motion to Waive Discharge and Convert the Case to a Case Arising Under Chapter 7 11 U.S.C. § 727(a)(10); 11 U.S.C. § 706(a), Doc. No. 178. The Clerk's Office issued a corrective entry on July 21, 2011, directing this Motion to be refiled since the caption on the PDF document did not match the CM/ECF entry that was made. The same Motion was refilled on July 29, 2011, at Doc. No. 180, and another corrective entry was made on August 3, 2011, stating that it appeared to be a two-part motion (motion to waive discharge and motion to convert), and should be refilled as such. The Debtors took no action in response until September 12, 2011, when they filed a Motion to Waive Debtors' Prior Chapter 7 Discharge 11 U.S.C. § 727(a)(10), Doc. No. 182 ("Motion to Waive Discharge").
On September 30, 2011, the Trustee filed a Response to the Motion to Waive Discharge, arguing that the Debtors had abused the bankruptcy process and pointed
In an effort to rectify the procedural jumble that had ensued since the Trustee filed her Motion to Dismiss, on November 3, 2011, the Court issued an Order at Doc. No. 187 ("November 3rd Order"). Among other things, the November 3rd Order did the following:
The Debtors did not file a Response to the Motion to Dismiss by the November 23rd deadline, nor did they file a Motion for Hardship Discharge. Despite being directed to do so, the Debtors also failed to file a Reply to the Trustee's Response to the Motion to Waive Discharge by the December 5, 2011 deadline for doing so, although they did file a motion at 5:49 P.M. on December 5th seeking to extend the deadline for another 45 days, citing as a reason the busy schedule of Debtors' Counsel.
In issuing the November 3rd Order the Court was being exceedingly generous to the Debtors by giving them until November 23rd to file a Response to the Motion to Dismiss. As indicated above, that Response was originally due on May 4, 2011. However, the Debtors did not file an appropriate response to the Trustee's Motion to Dismiss by the original deadline nor did they seek leave to have the time extended in order to file such a response.
The Court does not enter this dismissal lightly and in doing so is fully-cognizant that there is a pending Motion to Waive Discharge which, if granted, could conceivably pave the way for the conversion of the case back to Chapter 7. However, the Court is satisfied that the Motion to Waive Discharge lacks merit and would be denied in any event because the Trustee is correct that a debtor may not "waive" a Chapter 7 discharge once it has been entered.
Specifically, the Debtors seek to waive their discharge pursuant to 11 U.S.C. § 727(a)(10).
The correct procedure to have a discharge withdrawn once it has been entered is to move for revocation pursuant to 11 U.S.C. § 727(d). However, under these circumstances, that provision would not afford the Debtors relief either since it is well-recognized that a debtor does not have standing to request revocation of his or her own discharge. See In re Davitch, 336 B.R. 241, 253 (Bankr.W.D.Pa.2006). See also In re Markovich, 207 B.R. 909, 911 (9th Cir. BAP 1997) (citing cases for the proposition that the Bankruptcy Code has no provision that would allow the court to revoke a discharge at debtor's request); 6 Collier on Bankruptcy at ¶ 727.17[1] (debtor does not have standing to seek revocation of a discharge).
In addition to being the law, prohibiting debtors from being able to undo their own discharge also makes sense from a practical standpoint. If a debtor were able to simply waive a prior discharge in order to obtain a more recent discharge, it would lead to much abuse, for example possibly allowing the circumvention of Bankruptcy Code provisions establishing minimum time periods between successive discharges. Allowing debtors to have a prior discharge waived or revoked would thus undermine the sanctity of the Chapter 7 discharge process and discharge injunction. See In re Gomez, 456 B.R. 574 (Bankr.M.D.Fla.2011).
The Debtors having failed to comply with the deadline imposed by the Court's November 3rd Order to respond to the Trustee's Motion to Dismiss, the Court not being aware of any meritorious defenses to said Motion, and the Debtors' lack of standing to seek revocation of the prior discharge, the case must be dismissed. Therefore,
(2) The hearing scheduled for December 14, 2011 at 3:00 P.M. is